March 31st, 2010 8:47 AM by Eric Fang
A few people asked me about my opinion about the short term rate trend, personally I think it should be back to the rate range. What I mean is that ARM rate will stay at the current range level, fixed rate will be a little bit lower, it should go back to 4.875% for 30 yr fixed; 4.25% for 15 yr fixed with no closing cost at all.
But I will need the confirmation tomorrow. You know, Fed stops purchasing MBS starting tomorrow. If the rate is normal tomorrow, the trend will continue.