Weekly Rates + Market Update

Mortgage bond prices rose last week, which helped mortgage interest rates improve, but only slightly. We saw a huge rally following the Fed rate cut Tuesday. Unfortunately the gains were short-lived and most were erased the following day. Trading remained volatile throughout the remainder of the week. The White House stepped in to help the troubled auto industry Friday, which sent stocks higher that morning at the expense of mortgage and Treasury bonds. The Treasury auctions will set the tone for trading this coming week. Foreign demand for dollar denominated assets will be the focus. The bond market will close early Wednesday ahead of the Christmas holiday Thursday. Trading will resume Friday. This shortened trading week may lead to mortgage interest rate volatility

Rates for December 19th, 2008 Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.875%, 4.988%APR
30 Year Fixed Interest Only 6.50%, 6.613%APR
15 Year Fixed Conventional 4.75%, 4.863%APR
3/1 LIBOR ARM Conventional 5.625%, 5.738%APR
5/1 LIBOR ARM Conventional 5.375%, 5.488%APR
5/1 LIBOR ARM Interest Only 5.125%, 5.238%APR
30 Year FHA/VA 5.50%, 5.726%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.875%, 5.976%APR
15 Year Fixed (to $600K) 5.875%, 5.956%APR
5/1 Treasury ARM 5.50%, 5.601%APR
7/1 Treasury ARM 5.625%, 5.726%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
30 Year Fixed Conventional 6.375%, 6.882%APR
5/1 LIBOR ARM (Jumbo) 6.75%, 7.257%APR
*60 Day Locks

6,9,12 and 24 month construction phases available. Construction phase interest only rate = PRIME (5%) + up to 1.25%. Perm. rates guaranteed through construction.Prior to modification, a free one-time float down is available. (30 Year Amortization)
For Realtor purposes only; not for distribution to potential borrowers. Rates are calculated based on no discount points and one origination fee. Conforming rates based on loan amounts greater than $200,000, minimum FICO score 720.