June 27th, 2009 10:52 AM by Eric Fang
We did have a wonderful week. The rate was about 0.375% to 0.5% better than the previous week. I did have some clients locked in the rate of 5.375% for 729k loans and will close next week(they wanted to lock in this rate first and wait for another refi in Nov).
The mortgage rate should stay at this level for most of this summer unless the economic news is too good or too bad. We expect the 30 yrfixed rate for 417k loan will be back to 5% level in Oct or Nov time.
The strategy now is locking into the lows. For the refi, staging refi is the way we will adopt. And for purchase, we will either take low ARM rates or lock in the rate when is is low; try to do no cost loans first, and refinance in the winter.
Fed already spent about 600B of 1.25T funds to purchase the MBS(Mortgage Backed Securities). We expect the Fed will approve extension of purchase more MBS if the market does not improve the end of this year.