Mortgage Blog

I have one borrower asked me whether he can get 3%
for high-balance loan. I told him that this is impossible.

Then he asked the possibility of 3.125% or 3.25%?
I would say 3.125% is almost impossible. 3.25% has 50%
of the chance.

But my question is that why we need to predict the rate?
Even on wall street, I know some "expert" will predict
the market, and most of the times the prediction was
wrong.

For the interest rate, the best strategy is to follow
the trend. And whether we can or can not get the rate
depends on bad is the us/europe/china economy and how
much MBS Fed will buy. A lot of factors.

But MBS as a commodity(or bonds), it has the bottonline.
But any 30 yr fixed rate is below 3% (the market) is insane
to me. There are nothing else the investor can purchase
other than MBS? I don't think so.