Mortgage Blog

I just complete my Dec Newsletter. And I reviewed
my Oct 2010 rate trend. Some of the opinion was right:
1)almost impossible to get 3.75% for 30 yr fixed.
2)The rate may go up after QE2.

But I was wrong by saying the rate will go only as high as
4.375% to 4.5%.

For the current market, I think the rate should go
back to the rate 4.5% pretty soon. If we are on track,
we may get this rate during the 1st two weeks of Jan.

I will update the rate trend after we have new data.

Some good news: Capital Economics says that the yield
on the 10-Yr T Note could fall back to 2.5% as the US
economic recovery ultimately disappoints and deflation
fears return.

Let's wait and see.