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If you're closing your loan after Friday, I left you unlocked.  I told you that the fundamentals of the economy would bring rates lower after the bailout was announced.  Long Beach mortgage rates were at 5.875%, today they're at 6.5%.  What's in store for the rest of the month?

Eric Holloman of Rate Link offers this two-minute research report about why "headline risk" should be replaced by economic data as a determination of mortgage-backed securities pricing.  If he's correct (and I think he is), the next three days will be important for the direct of mortgage rates through the end of the year.

I'm still recommending that you float your mortgage rates; I believe we'll see rates come back down under 6% within the next 7-10 days.  If the economic data suggest that we are NOT headed for a recession, Long Beach mortgage  rates will stay in the 6.25-6.75% range.  If the data are as indicative of a downturn as I think they will be, lower rates should be on the horizon.  As always, keep checking back.

Brian Brady is a Managing Director with World Wide Credit Corporation, a San Diego-based mortgage banking and brokerage firm. Google calls him America's #1 Mortgage Broker; you can call him at (858)-777-9751