Aloha Friday,

Rates are roughly the same as last week. The 30 year fixed rates have traveled back up and down during the last week as much as .375% ending up at roughly the same as last Friday.

Bonds have a big week ahead of us as we prepare for $104 Billion in debt next week. The Treasury announced Thursday that it will auction $104 billion worth of debt next week. The government has been selling Treasuries at an unprecedented pace to fund its rescue plan for the economy, pushing debt prices lower.

The perception that the economy may be in recovery mode has limited demand for Treasuries. Yields plummeted at the end of 2008, when investors ran to the safe haven of government debt amid worries about the global economy.

While falling Treasury prices indicate confidence in the economy, rising yields also pull mortgage rates higher. That rise in mortgage rates threatens to derail a recovery in the housing market.

To try to keep a lid on yields, the Fed has been buying back $300 billion of its own debt, a program called quantitative easing.

Please look at our jumbo rates. They are great and loans over $417,000 are now looking fantastic. Borrowers should really be looking at the super 10 year fixed rate we have up to $5 million. The down payments are low also.

Please let us know if we can help in any way this weekend.