Weekly Rates + Market Update

Mortgage bond prices fell last week pushing rates slightly higher. In an announcement earlier in the month, Fed Chairman Bernanke indicated the timing of a global economic recovery was "highly uncertain." This uncertainty was reinforced last week as the economic turmoil continued across the globe and Spain joined Greece to become the second Euro zone country to have their debt downgraded by Standards and Poor’s. A lower debt rating increases the cost to borrow further aggravating the attempts to fund the massive bailouts. The abundance of fundamental data this week provides a good opportunity for mortgages to improve. If the data shows weakness in the economy then it is possible for mortgage bonds to rally resulting in mortgage interest rate decreases. However, if the data shows that the economy is rebounding or any significant signs of inflation, mortgage bonds may fall pushing mortgage interest rates higher.

Also, licensed agents, if you would like to purchase a home utilizing FHA financing, you can use your co-broke to go towards your 3.500% down payment requirement!

Please give me a call if you have any financial questions or if you need a second opinion on a loan scenario. If you are calling after hours or on weekends, you can reach me on my mobile 480-225-2987 or apply online at www.creativefinanceaz.com
Have a great weekend!!!

Rates for January 23th, 2009. 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%, 6.723% APR
15 Year Fixed Conventional 4.625%, 4.738% APR
3/1 LIBOR ARM Conventional 4.875%, 4.976% APR
5/1 LIBOR ARM Conventional 4.875%, 4.976% APR
5/1 LIBOR ARM Interest Only 5.00%, 5.113% APR
30 Year FHA/VA 5.250%, 5.502% 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) 6.00%, 6.382% APR
5/1 LIBOR ARM (Jumbo) 6.375%, 7.757% 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.