Mortgage Blog

I posted this article following on wenxuecity.com. I think it's better to share with you. I copy it here as well:

Here are some of the thoughts:
1)The lowest rates may be behind us.
At least in the short term.

2)The mortgage rate is still driven by the economic 
news. The rate is higher with better news, and lower
with bad news.

3)What's the possibility of 4% interest rate for 30 yr fixed? The mortgage industry talked about this rate about one month ago. And the market is preparing for it. The bond market started trading 3.5% coupons for the lower rates. But so far there is some possibility for lower rates, but still it depends on 
whether we will have a double dip.

4)The long term bond still over-bought. 
???posted similar articles before(I could not find the link). It's normal for the current interest rate inched up.


5)Will the mortgage go higher in the short/long term?
With the Fed purchasing the treasury/MBS, and the clouds about the economy recovery. I don't see higher rates for at least another 6 months.

6)The trading range is very narrow for the mortgage rates. It's still within 0.125% to 0.25% range. Sometimes, the locking period will make a little bit difference for the rates. The best strategy is still locking at the valley and floating at the top. For today's market, it's pretty safe to float.