Well, what once was thought to be a good thing is now gone by the way side and actually sputtered some more. What am I talking about? Mortgage interest rates have gone from one extreme to the other. The morning of December 17th saw ALL TIME low mortgage rates for a period of about 60 minutes from that point till today it has been nothing but bad news for mortgage rates and all the time the U.S. government has been doing most of the buying. For instance on 12/17/08 the 4.5% MBS coupon (the bond that affects mortgage rates high price=low rates) was at 103-06 and today we closed (keep in mind this is the same 4.5% MBS coupon) at 101-04!
Simply put the "media frenzie" surrounding mortgage rates is a complete mirage right now. Be advised that we are no longer in a refinance rally and the one that was underway was the shortest I have seen in 11 years! Let's hope we see some rebounding and quickly otherwise there will be a lot of disappointed consumers out there. Although it seems disappointment has been the norm lately.
Brought to you by Flat Branch Mortgage, Inc.
Your Mid-Missouri Mortgage Lender
Posted by: Shawn Von Talge
Wednesday, January 21, 2009
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