Fed cut 0.50%

This week has once again been volatile, but the good news is the Fed cut 0.50% on the Fed Funds and the Discount Rate. Although not directly tied to mortgage rates, these rates are tied to Prime and are also what the banks are charged by the Fed overnight. Mortgage rates are, however, continuing to trend down right now and with rates at 5.75% on a 30 year fixed at ZERO points, why isn’t it a good time to buy? Buyers are getting off the fence!

Mortgage bonds were trading higher this morning on the heels of a weak employment report that said non-farm payrolls fell by an estimated 17,000 jobs in January. This news is good for mortgage pricing.

Stocks are unchanged this morning and are being held down by the lower than expected jobs number--despite the fact that Microsoft Corp is making a bid to acquire the search engine giant Yahoo.

Attached is this week’s rate update. Make it a great day and a safe Super Bowl Weekend!