Rates have held steady for the past few weeks as markets have attempted to decipher the conflicting reports about what the Fed will do next. Ben Bernanke has made contradictory statements in several different for a about whether he is a “hawk” or a “dove” on inflation. Like the regular hawks and doves on war, no one wants to be seen to be a dove, even if that’s what they really are. So I would bet on hawkish moves from Bernanke even if there’s evidence that the economy is cooling dramatically. There won’t be any such evidence, but there also won’t be any evidence of inflation, so the markets are in limbo and likely to remain so.
That puts the 30-year at about 6.625% and the 15-year at 6.25% or thereabouts.
We’re getting a large number of calls on the Mortgage-Saver loan, which we detailed in the latest issue of our newsletter (available upon request). We were of the impression when we began working with this loan that it would benefit primarily those that had irregular incomes (like ourselves), salesmen, business owners, and the like. But we’ve also seen superior analysis results from those who have regular incomes, who just want to pay their mortgages off sooner but don’t really want to have their equity locked in their houses.
This is a truly exceptional loan program, and the best bet I’ve seen for actually reducing the average family’s mortgage debt in a rational way. We’re going to talk more about this as we go along here. It’s important.