I was speaking to a potential client today who said the following: "what is going on with interest rates, I see they are going lower! I'm going to wait because I know they will come down more." He is correct and of course, the media gives everyone just enough knowledge about any subect to be dangerous. Particulary when they are talking about something with a lot of media attention. For example, I have a family member who works in the cellular telephone business. He's pretty high up with a large provider and we often compare notes about how people think they know it all about cellular telephony. They don't, regardless of what they think! The same goes with mortgages.

Alert, Alert: Freddie Mac just reported the national average for mortgage rates is 4.71% the lowest this year! Right away, everyone says "hey, rates are coming down, I read it in the paper!" How much do you believe that you read in the paper or better yet, on the internet. What about the fine print? The 4.71 cost an average of .7 points to get and there are other closing cost. I can hear it now....."you mean it is not free?" I read in the paper that it's free! I'll call someoen else" People, that is yesterday's news, it is last weeks figure! And, at that time, I posted my rates at 4.625 with ZERO points.

I posted the following to my web site today and continually update the information as to LOCK/FLOAT. My customers always get the lowest rates and LOCK before pricing changes. I can tell everyone as an experienced Mortgage Professional...RATES WILL GO UP! The key is to be ready to lock when the market turns so that you can lock when pricing is best:

Stocks are down big for a few reasons: Disney disappointed investors and is creating some concerns about the "buoyancy" of the consumer, Dollar rally is causing raw materials to decline in price thus affecting the price of the related stocks the dollar has made a decent rally bring the price of oil down and supplies were above expectation today causing prices to fall further, and there has been a good run up in stock prices so some profit taking is occurring, too.

Bonds are benefiting from the sell off in stocks as traders need to park their money in the bond market. In addition, the Treasury Department auctioned of 10 Year Notes today and that auction went very well. Given that the Treasury Auctions have gone well this week and that there has been ample previous demand for 30 year Treasury notes, it is safe to FLOAT for now. There are inflation numbers due tomorrow and Friday but concerns over these numbers and their backward looking nature are assuaged by "Fed Speak" telling the market inflation is controllable and the recent dollar strength cutting into concerns for future inflation.

Please review my site: www.rglovermortgage.com

Rates are getting lower so please contact me to discuss how to get in the best position to LOCK at the right time.