Mortgage Rate Apocalypse
Posted On: June 23rd, 2010 by James Posted In: Mortgage Rates • Refinancing
From the industry that has been “crying wolf” for the last I don’t know how many years about “low low rates”, I know that this is just more noise. I have been trying to figure out exactly how to describe what is happening lately in the fixed rate mortgage marketplace. Because rates usually move in step with the general state of the economy (economy good= rates go up, economy bad= rates go down) we’ve been in a VERY low mortgage rate market for most of 2010, and late 2009. I know that certain radio advertisers have been pimping the so called “rate of a lifetime” every 15 minutes for going on 3 years now, to the extent that the urgency has been drained completely. Well I’m here to tell you that today the FNMA 4% bond coupon that we use to track pricing has just hit the highest level in history.
I think that short term we are ripe for a slight correction, but longer term, we are looking to stay firmly below 5% for the foreseeable future.
The beginnings of a slight pricing correction
Bond pricing goes up = fixed Mortgage rates go down
I don’t want to brag (too much… okay yes I do want to brag), but please check out my January 2010 Mortgage Rate Prediction! When everyone was saying that we would spike after March, you can see that we’ve done the exact opposite. I did predict a slight uptick, but I had no way of predicting what we are seeing now. I’m stunned.
Call me to lock a rate! I am seeing 15 year fixed rates in the sub 4% rate territory, and 20 year fixed in the VERY low 4%’s. I encourage you to fill out the “loan Check up” form at the upper right to see if you could benefit from a refinance. And there are some great options out there, so don’t think that just because you’ve lost value that you won’t qualify.
LETS TALK!
3 Responses
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Its really crazy. I feel like a hero locking my clients in, only to find the rates improving week by week. It will capitulate soon enough.
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Hi James,
Great article. I am shocked and amazed that rates are this low. From an interest rate perspective, it definitely is a great time to buy real estate in Portland.
Really like the title of this article. But it has got me thinking… just how low are these rates going to go? I have to imagine and hope that they are not going to go much lower. We have definitely been hearing enough radio commercials of how you can lock a rate below 5% but now it is possible to get one in the low 4′s.
In every industry you will have speculators that want to get the lowest price possible but the problem some of those individuals run into is that if you wait to long you can get burned.
“pigs get fat, hogs get slaughtered”
Lock it Down