Low mortgage rates and the financial reform act mean that now is the time to buy a home.

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Mortgage Rate Recap

Jul 19, 2010

Last week; a good one for mortgage rates.. Mortgage rates fell about 8 basis points. TheDJIA -101, gold -$17.00, crude oil -$0.32. Not so good for the economic outlook. The NY Empire State and the Philadelphia Fed business index, both weaker than forecasts; and the U. of Michigan consumer sentiment index plunged to 66.5 frm 76.0 well below estimates. Consumers still are not confident about the economic outlook

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This week may be interesting for the bond market and mortgage rates. Only three major economic reports are scheduled.  Two days of semi-annual congressional testimony by Fed Chairman Bernanke. The first day of testimony has the potential to influence changes to mortgage rates more than many of the monthly or quarterly pieces of economic data that we see regularly.

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The first economic report of the week comes Tuesday morning with the release of June’s Housing Starts. This data gives us an indication of housing sector strength, but is not considered to be of high importance. Analysts are currently expecting to see a decline in new home construction starts. However, this data most likely will not have much of an impact on mortgage rates Tuesday unless it varies greatly from forecasts.

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Fed Chairman Bernanke will speak before the Senate Banking Committee Wednesday and the House Financial Services Committee Thursday mornings at 10:00am ET. His testimony will be broadcast and watched very closely. Analysts and traders will be looking for the status of the economy and his expectations of future growth, particularly inflation concerns that will lead to changes in key short-term interest rates. This should create a great deal of volatility in the markets during the prepared testimony and the question and answer session that follows. If he indicates that inflation may become a point of concern, we will likely see the bond market fall and mortgage rates rise.

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Mortgage rates drop to new low of 4.57 percent | Richmond Times-Dispatch.

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Why a Mortgage

Jul 18, 2010

A mortgage is a debt that is secured by real estate. Mortgages play a large role in the financial markets. When used properly mortgages go beyond the role of providing a way to achieve the American Dream of home ownership: They provide a means of wealth creation, a low cost method of reducing cash outflows, among a host of other benefits.

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Mortgages help people manage their lives more effectively. It is important to make sure on has the best mortgage to fit his/her situation. A mortgage is one of the largest debts taken out by households, and choosing the the wrong mortgage program may cost hundreds of thousands of dollars. It is more important to choose the best mortgage for ones needs than to get the absolute lowest rate on the wrong loan product.

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Is your mortgage right for you?  Will it be right for where you want to be?  Happy to discuss if anyone’s listening.

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