Rates hit Record Lows!

The Fed follows through on their Mission of Buying Mortgage-Backed Securities to Drive Rates Down.

After rising the last 2 weeks, rates have plunged this week in response to the Fed's buying binge.

See the graph below:

Keep in mind this is a graph of MBS prices, which is inverse to mortgage rates. Notice the peak today (as of 4pm) exceeds all previous high marks.

We are seeing challenges though in getting these prices to translate to lower rates.

Lenders are getting slammed with refinance applications and are holding back on passing on all the pricing benefits to better rates. This is one way they control the number of loans submitted.

On top of that, lenders laid off tens of thousands of employees in 2008 and are short on manpower.

We are advising all our clients to get their applications in with us so we can start the underwriting process, while we watch the rates to lock in when it makes sense.

Gotta run and take care of clients:)