In time to ruin the Christmas cheer, the bond market has decided to play Scrooge. Mortgage rates saw a record 40yr low last week with pricing being extremely attractive. This record low was brought on by the Federal Reserve promising to become an active buyer of mortgage paper. It was NOT a result of the Fed's rate cut.
Over the last couple of days, mortgage backed securities have seen losses resulting in rates moving upward from last weeks historic lows. As with the stock market, we are seeing volatility in both directions. Rates will look attractive one day only to look less attractive the next. Trying to time the bottom of the market is like trying to predict a stock price, almost impossible to do.
I have been advising clients that a good deal that makes sense is worth pursuing. There is a fine line between good and greedy. Borrowers who try to time the bottom of the market generally end up getting a worse deal.
We are continuing to work diligently on responding to all phone calls and e-mails. I appreciate your patience as we work thru our back log of inquiries.
