January 26th, 2011 11:44 PM by Eric Fang
If history repeat, then Feb rate should be better than Jan.
For the past 30 days, the interest rateswere stuck within the range. Though 5/1ARM rateis almost close to the history low, the other ratesare still aroudn 0.375% to 0.5% higher. For 30 yr fixed, we had one day with the rate of 4.625%(no cost;400k loan; impound), and it had difficulty to break this thick wall.
I still remembered the 1st of Feburary, one escrowofficer called me and asked how I was doing, I toldher that I did not get any busines within that week. And the interest rate was also heading higherfrom end of Nov to beginning of Feb.
But to everybody's surprise, 2010 turned to bethe best year for the interest rates and the business for the loan originators.
But this year is different. We can tell that the economy is improving and the worst is over. So most likely, we will not see lower low rates any more. But I still think we should be able to get better rates. If we don't see a break through in Feb, then we will have to say good-bye to the good rates the rest of this year.