Interest rates traded in a very choppy pattern this week with huge gains on Monday and large losses Thursday and today.  The 30 yr fixed ended the day to day at 6%, 15yr at 5.75%, FHA and VA at 6.5%, and JUMOB arms at 5.25-5.75%.

 Mortgages are finding support as investors finally get it; that mortgages originated in the last 15 months are a good investment with the government guaranteeing all loans of Fannie and Freddie and FHA. As we have noted in past comments, the spread between the 10 yr note and 30 yr mortgages is well wider than normal, making investments in mortgages at current rates one of the best investments fixed income investors can make. That said, investor fears remain high about anything that has to do with residential real estate. Only the brave and wise are buying now.  Hopefully we can continue the trend toward better rates.

 Please let me know what I can do to help you with your business!