Mid Oregon Lending, Inc.

April 30, 2008

Happy Wednesday everybody!

More good news for those of you that have a Home Equity Line of Credit! The Fed has continued their cutting cycle and dropped the Fed Funds Rate ANOTHER .25% to 2%, which in turn drops the Prime rate to 5%. And as you may already know from previous e-mails, many Home Equity Lines of Credit are tied to the Prime Rate!

And as you may recall from a previous Market Update, typically mortgage rates (not equity lines but FIXED first and second liens) will react negatively to a drop in the funds rate. However, this afternoon we have seen mortgage rates actually improve after the release of the news! What caused the improvement to mortgage rates was the rather subtle message delivered along with the rate cut in the Fed’s Policy Statement that their cycle of rate cuts has at least temporarily come to an end. The speculation being that the Fed has deemed their previous cuts sufficient to stave off inflation at least for the time being.

As with most of my updates, however, I’ll remind you that this is just a good snapshot of what’s happening today, and a tremendous amount of volatility exists in credit markets which will continue to impact other segments of the economy.

I’d go on and on about potential influences on mortgage rates, but my wife tells me I get too wordy with my updates. So I’ll just wish you all a productive and enjoyable rest of the week!

As always, If you know anyone who may be in need of my services, I’m here to help!

Carl Salvo
Mid Oregon Lending

PS, Mid Oregon Lending, Inc is Growing! We’ve added another loan officer to our company and I’m thrilled to announce that Greta Salvo (my lovely wife for those that don’t know her) has joined our ranks. Greta brings with her nearly a decade of experience in lending, as well as title and escrow knowledge, and we’re thrilled to have her on board.

497 SW Century Drive · Suite 104
Bend, Oregon · 97702
Ph. 541-728-0390 · Fx. 541-728-0395
Oregon License ML-4707 · NMLS # 277334



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	News · Fed Lowers Funds Rate - AGAIN! April 30, 2008 Happy Wednesday everybody! More good news for those of you that have a Home Equity Line of Credit! The Fed has continued their cutting cycle and dropped the Fed Funds Rate ANOTHER .25% to 2%, which in turn drops the Prime rate to 5%. And as you may already know from previous e-mails, many Home Equity Lines of Credit are tied to the Prime Rate! And as you may recall from a previous Market Update, typically mortgage rates (not equity lines but FIXED first and second liens) will react negatively to a drop in the funds rate. However, this afternoon we have seen mortgage rates actually improve after the release of the news! What caused the improvement to mortgage rates was the rather subtle message delivered along with the rate cut in the Fed’s Policy Statement that their cycle of rate cuts has at least temporarily come to an end. The speculation being that the Fed has deemed their previous cuts sufficient to stave off inflation at least for the time being. As with most of my updates, however, I’ll remind you that this is just a good snapshot of what’s happening today, and a tremendous amount of volatility exists in credit markets which will continue to impact other segments of the economy. I’d go on and on about potential influences on mortgage rates, but my wife tells me I get too wordy with my updates. So I’ll just wish you all a productive and enjoyable rest of the week! As always, If you know anyone who may be in need of my services, I’m here to help! Carl Salvo Mid Oregon Lending PS, Mid Oregon Lending, Inc is Growing! We’ve added another loan officer to our company and I’m thrilled to announce that Greta Salvo (my lovely wife for those that don’t know her) has joined our ranks. Greta brings with her nearly a decade of experience in lending, as well as title and escrow knowledge, and we’re thrilled to have her on board. 497 SW Century Drive · Suite 104 Bend, Oregon · 97702 Ph. 541-728-0390 · Fx. 541-728-0395 Oregon License ML-4707 · NMLS # 277334