Arizona Mortgage Rates Roundup October 10, 2008

October 10, 2008 · 4 comments

Arizona Mortgage Rates for October 10, 2008

Mortgage Related News For The Week

I learned something from my now 82-year-old grandfather on the golf course a few years ago.  He made his living being a farmer and had a high school education.  We were talking about how he had recently found himself in a golf tournament paired with three heart surgeons.

His advice?

“If you ever find yourself paired up with a bunch of smart people and you have no idea what they are talking about, the first thing to do is shut-up.  No use opening your mouth and showing people you have no idea what you are talking about.”

Here are just a few of this week’s headlines that are impacting the mortgage market in some way:

The Treasury may soon be buying ownership stakes in banks

AIG has tapped $70 of the 85 Billion bailout so far with another 40 Billion (or so) approved from the NY Fed to keep operations going

The Fed starts buying (an unlimited amount of) commercial paper

One year after hitting it’s all-time high, the DJIA has huge daily swings and ends on Thursday at its lowest point since 2003.

The Fed cut the overnight lending rate for banks by 1/2 point to 1.5% (note: NOT mortgage rates!) and got most other major world governments to make similar rate cuts

More than once this week, I was asked the question:

“So what does all of this stuff in the news mean for interest rates?”

My reply each time?

“Well, one of three things can happen: They can go up, they can go down or they can stay the same.”

I should have taken my grandfathers advice and kept my mouth shut.

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