Rates,

Well it was a pretty mellow week, as it usually is with a holiday involved.  Trading was only 1/2 day on Thursday, and no trading on Friday.

The only real economic news that came out was:

March existing home sales, expected to be up 2.5%, was actually up 3.7%

March housing starts, expected to be up 7.3% was up 7.2%.

So rates actually dropped just a little, Govies were the biggest move, we are now quoting FHA at 4.50% (5.00 APR).

Lender VS. Broker Compensation.

So if you haven't heard about this, then bad, bad, bad, you should of come to my free "Lunch and Learn" on Thursday, where we discussed this in detail.

But here is a quick tip, as a consumer and as a Realtor, you need to ask your lender if they are being paid by:

Borrower paid compensation, where the borrower is paying the lender and getting the lowest possible rate.

OR

Lender Paid Compensation, where the borrower is getting charged a higher interest rate, and getting dinged for the life of the loan.

Just today, I stole a loan from another "BIG" lender in the area, they quoted a buyer 5.625% today on an investment deal, where as I am 5.125% today.  That was .50 of this borrower's ROI that the "BIG" bank was taking away from him.

ALWAYS ASK YOUR LENDER, BORROWER PAID OR LENDER PAID, they have to tell you!

Next Week:

Next will will be very interesting, due to 1 item, the Federal Reserve will be holding their Board, where as they will decide whether or not to raise short term interest rates.

Now we are expecting that they will not raise rates, so that is noting new.  BUT....

What is new is the fact that the Federal Chairman will be taking a Q & A from the media after the meeting.  This is VERY unusual, and all eyes will be looking at comments he will be making.  I foresee a VERY, VERY volatile day after he gets done.

Have a GREAT EASTER WEEKEND!