by Brian Brady

Weird things are happening in the mortgage-backed securities market. Strong
buying, in the 30 year-fixed rate loans, has dropped rates .25% since my last
report, The ARM rates, however, have RISEN. A weird phenomenon, indeed. I'm
only quoting two loan programs (the others make no sense):

Pasadena Mortgage rates for August 29, 2008. Loan amounts up to

5/1 ARM 5.750%

30 Year Fixed 6.125%

All rates offered to the borrower with 1 point cost. Rate quotes assume
a purchase transaction with a 20% down payment, 720 credit score, and full
income qualification. Rates are subject to fluctuation. Custom rate quotes and
rate lock advice are available by calling (858)-777-9751.

Short-term, this is about as good as it gets. I think we'll see some higher
rates, in the next 7-10 days, with rates coming back down to this level by the
end of September. I'm befuddled for the 3 month trend so I'll stay neutral.


Next 7 days: Higher

Next 30 days: Neutral

Next 3 months: Lower? (I'm

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