April 1st, 2010 12:41 AM by Eric Fang
Though I post this today, it's NOT an April Fool Joke.
Officially Fed Exit the MBS purchase, the rate should should stay at this level for quite some time, but the market will be more volatile without this big player. I know a few agents and/or borrowers like to float the loans until the last minutes, you guys may re-think about this strategy.
I change my opnion a little bit about the fixed rate for the near term. I don't think they will go lower than 4.875% for 30 yr fixed(15 yr fixed for 4.25%, all conforming) any more.
And be ready for the seasoning changes. The rate should stay low or slightly up. But I will keep watch the benchmark spreads closely. Will post my thoughts if I feel like the rate will go up.