Looks like the Fed was back in the markets this morning aggressively buying Mortgage Backed Securities. Let's put it into perspective - there are almost 120 trading days from January 5 until the end of June. The Fed will be buying $500B of Mortgage Bonds - that equals approximately $4B in buying power each trading day...that is pretty good buying support, which could help mortgage rates move steadily sideways to lower over the first two quarters of 2009.
There a saying on Wall Street..."Don't fight the Fed". And with the Fed providing underlying buying support to Mortgage Bonds, we should be looking to float longer-term, but on short-term transactions we should be ready to lock at a moment's notice to protect pricing due to market volitility. We will likely see the lowest rates in our lifetime during the first two quarters of 2009, so get this message to everyone who can benefit and have them lock in during this once in a lifetime opportunity.
Jason Norris, MBA, CMPS, President MFG Mortgage Services, LLC 1.775.322.0496
Nice article. Good explanation about mortgage Rates.
Posted by: best home loan | January 09, 2009 at 03:33 AM