August 17th, 2010 9:33 AM by Eric Fang
There is only one lender increased the rate after 2pm PCTyesterday. They may know something we did not know and indeedthe rate is up a little bit higher today.
Though the trend of the interest rate will inch lower, but theshort term rate may go higher. The lenders did not have the pipeline problems until recently when the interest ratehits record low. But still, we did not see the volume of thelast year when the lenders offered "free rate extension" for all loans because of the volume.
I did subscribe a bond trade magazine. And though there were not accurate, but they did not mention that the short term ratetrend may go a little bit higher because the bonds were over-bought.They analyzed the bonds market by the technical analyze.
My recommendation is still locking the rate at the current level andrefi a few months later if the rate is lower.
One thing needs to be noticed is that the financial reform relatedto the mortgage industry. We are required to pass both State and Nationallicense test this year; and there are more reforms regarding YSP and other related issues in the coming months. Obama did need A New Model for the two GSEs.I will keep you updated on those news on this month newsltter. Sorry for not being able to delivery more updates recently. I am trying my best to close all the loans and help my clients toget the best rates(My volume is about 60%-70% higher than last year,and I am surprised that I can stillhandle that volume).