Mortgage Blog

Today's bond selloff broke the support, which is not necessary bad.

1)The mortgage industry needs the correction. It went only one way(one direction) for the most of the year 2010.

2)It will let the borrowers know that the rate can go higher as well.

3)Also, the borrowers should start thinking about the long term. Which loan program do you really want? If the future inflation confirmed, the rate can go up crazy.

4)Fed is always correcting the "previous" mistakes. Maybe next time, after the inflation not sustainable, they will fight inflation again.