The Veridian Blog

Last Monday’s news about the government bailout of Fannie Mae and Freddie Mac triggered the sudden fall in mortgage rates we had been waiting for all summer. Well, better late than never, I suppose. Some lenders dropped as much as 0.50% in a single trading day – the 3^rd time this has happened during a very volatile 2008. While the roller coaster market causes havoc for staffing scalability, it certainly does make things exciting! We witnessed a slight pullback during the remainder of the week, but then bonds rallied on Friday after news of the Producer Price Index falling below expected numbers.

This morning, the financial markets are crumbling again: Lehman Brothers files for bankruptcy, Merrill Lynch sells itself to B of A and AIG disclosed a restructuring plan to avoid a credit rating downgrade. Bonds are reacting very favorably – our NO-COST 30-year Jumbo/Conforming (up to $729,750 in the Bay Area) rate is below 6.0% again and so is the traditional 30-year conforming rate ($417,000 and less).

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