Weekly Rates + Market Update

Stocks slumped Friday afternoon after a government report showed another big monthly drop in payrolls, resulting in the biggest annual job loss since just after World War II. Employers cut 524,000 jobs from their payrolls in the last month of the year after cutting a revised 584,000 in the previous month. That brought 2008's total job losses to nearly 2.6 million, the worst year for workers since 1945.The 524,000 number was roughly in line with the 525,000 forecast by economists surveyed by Briefing.com. However, many on Wall Street had thought the number might be even higher, after a report earlier this week showed the private sector lost 693,000 jobs in December.The unemployment rate, generated by a separate survey, rose to 7.2% from a revised 6.8% in November. Economists thought it would rise to 7%.

Mortgage bond prices remained volatile last week with trading tied to both the Treasury market and stocks. The Treasury market (10 and 30-year bonds) lost significant ground early in the week as investors fled the low yields opting to purchase Mortgage Backed Securities instead. The selling pressure in Treasuries caused those rates to move higher however mortgage rate benefited. Adding support to mortgage rates were lower stocks where the DOW Jones index fell below 9,000 early in the week.

Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario. You can also go directly to my website: www.creativefinanceaz.com for information or to fill out an application.

Rates for January 9th, 2009. Rates Change Daily. Call for current pricing. #0902429
PROGRAM
30 Year Fixed Conventional 4.625%, 4.738%APR
30 Year Fixed Interest Only 6.375%, 6.488%APR
15 Year Fixed Conventional 4.25%, 4.363%APR
3/1 LIBOR ARM Conventional 4.75%, 4.863%APR
5/1 LIBOR ARM Conventional 4.625%, 4.738%APR
5/1 LIBOR ARM Interest Only 4.75%, 4.863%APR
30 Year FHA/VA 5.00%, 5.252%APR
*30 Day Locks

JUMBO $417,001+
30 Year Fixed (to $600K) 5.75%, 5.851%APR
15 Year Fixed (to $600K) 5.625%, 5.726%APR
5/1 Treasury ARM 5.375%, 5.476%APR
7/1 Treasury ARM 5.625%, 5.726%APR
*30 Day Locks

ONE-TIME CONSTRUCTION
Conforming & Jumbo (to $8,000,000)
5/1 LIBOR ARM (Conforming) 6.375%, 6.757%APR
5/1 LIBOR ARM (Jumbo) 6.625%, 7.132%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.