Weird things are happening in the mortgage-backed securities market.  Strong buying, in the 30 year-fixed rate loans, has dropped rates .25% since my last report,  The ARM rates, however, have RISEN.  A weird phenomenon, indeed.  I’m only quoting two loan programs (the others make no sense):

<Mortgage rates  for August 29, 2008.  Loan amounts up to $417,000:

5/1 ARM              5.750%

30 Year Fixed      6.125%

All rates offered to the borrower with 1 point cost.  Rate quotes assume a purchase transaction with a 20% down payment, 720 credit score, and full income qualification.  Rates are subject to fluctuation.  Custom rate quotes and rate lock advice are available by calling (858)-777-9751.

Short-term, this is about as good as it gets.  I think we’ll see some higher rates, in the next 7-10 days, with rates coming back down to this level by the end of September.  I’m befuddled for the 3 month trend so I’ll stay neutral.

MORTGAGE RATE TREND:

Next 7 days:      Higher

Next 30 days:     Neutral

Next 3 months:    Lower? (I’m stumped)

Buffalo mortgage rates report is offered courtesy of Brian Brady.

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