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Mortgage rates at 9-month high!

Freddie Mac says 30-year fixed rate rise to 6.42% in latest week as economic reports show inflation is increasing.

Michael and I have been speaking at real estate investing groups quite frequently as of late, urging investors to "pull the trigger" on our multifamily duplex and 4-plex units in Fort Worth, TX. We believe the mortgage interest rates and ability to obtain a loan are going to continue to worsen. This recent report by CNN Money confirms what we have been explaining to our investors. If you wait too much longer, there may not be a loan for you, and if there is, the rate will be much higher, reducing or eliminating cash flow and the ability to become an investor or add to your current portfolios.

Last Updated: June 19, 2008: 11:27 AM EDT

NEW YORK (CNNMoney.com) -- Rates on 30-year fixed mortgages have surged a tenth of a percentage point to a 9-month high on growing concerns about inflation, mortgage backer Freddie Mac said Thursday.

Freddie Mac (FRE, Fortune 500) said 30-year fixed-rate mortgages averaged 6.42% with an average of 0.7 point in the week ending Thursday, up from 6.32% last week. Last year at this time, the 30-year loan averaged 6.69%.

The last time the 30-year fixed rate mortgage was higher was the week ended Sept. 6, when it averaged 6.46%, according to Eileen B. Fitzpatrick, a Freddie Mac spokeswoman.

"Fixed-rate mortgage rates continued to climb this week to the highest point in nearly nine months following the release of May's consumer and producer price indexes, both of which showed stronger levels of inflation," said Frank Nothaft, Freddie Mac vice president and chief economist, in a statement.

"Additionally, consumer prices rose 0.6% last month, the most since November 2007, and traders began to fully price in a Federal Reserve rate hike by the end of September, based on the federal funds futures market," he added.

For rates to stop climbing and start to ease, "we would have to see some settling of inflation pressures - notably a leveling, if not outright decline, of food and energy costs," said Keith Gumbinger, vice president of HSHAssociates.com, an online publisher of consumer loan information.

Our investors who have recently acquired contracts for duplex units will be rewarded for their decision with lower "locked-in" interest rates, higher cash flow, and the tax advantages which go along with this investment vehicle. I strongly urge all investors who have been contemplating a decision to move forward, do so immediately, or risk the probability of missing out on an extraordinary opportunity in today's market.

On another note, we have recently acquired contracts on two quadplex units in Fort Worth, TX. I am keeping one and releasing the other to our investors. Due to the lending crunch, as explained above, our lender can not allow us to keep both. Keep in mind that both Michael and I have excellent credit, numerous performing assets, and a proven history, and yet, we are not allowed to purchase both. This is just another example of the lending market crunch. If you are interested in the quadplex info, send us an email and we will get you all of the information. Also, call or email us to move forward on the duplex investment as well.

William Barnard - Managing Partner

Nationwide Property Investments, LLC