June 4th, 2009 10:19 PM by Eric Fang
Yes, We had another Bond sold off this Thursday June 4th, 2009. The mortgage rate is back to the highest level after Nov 18th.
We will have to change the strategy to protect ourselves. The new strategy is "lock into the lows"(your comfortable rates). And do StagingRefi if we still have the chance.
We had similar situation in Jan. The rate went up over 5.5% for 417kloan for 30 yr fixed(6% for 625k loan) after Jan 8th low rates. And inFeb 14th, same thing happened again. But the story is different this time. In January and Feburary,the rate was higher because the lender could not handle their locked pipeline, they have to increase the rate to lower the volumes so that LOs will not send the loans to them and they can close the loans in the pipleline. And they did it on purpose.
Since last week, the bond investors are very cautious about the debtsfrom the us government and they don't want to hold the bonds, insteadthey invested the money to the oil, gold and commodities. So this rate hike is different.
But liek I said before, We still think and expect the Fed will intervene this weekend or next week. Let's wait and see how the rate goes after next week.