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The Membrane Domain

Notes On Mortgages - Lock It In, Float It Down
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Interest Rate Question & Answer

Q: What do you see happening with the 30 year rate in the month of September?

A: The market is now watching economic news closely ... to try and guess what the Fed will do next. If the fed should cut rates again, taking the market by surprise, rates could drop quickly. Since the dollar has rebounded, and the economy shows strength, why lower rates? The problem with any financial instrument is guessing the future -- if I only had a crystal ball ....

If I were floating my rate, I would "lock it in" and "float it down" (in the event that the Fed should cut the rate.) A float-down allows you to lock in certain mortgage rates. Should the rate drop before your settlement date, you may re-lock at a lower rate.

For more info. on float-downs email dj@membrane.com (Please enter the words float-down in the subject line.)

The Real Estate Market

Sales of new and existing homes have improved dramatically throughout most of the United States. Consumer confidence is up. The bad news for interest rates has beeen good news for the housing market. The only part of the United States lagging behind is the Mid-Atlantic Region, therefore; there are many "good buys" left. For real estate information covering the Greater Philadelphia Region, please emial scott@membrane.com.

DANIEL BROUSE
e-mail brouse@membrane.com
(800) 783-9333 x192
(610) 397-0330 x192
Beeper 215-960-5556

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