Mortgage Blog

Short Term Rate Trend(June 15th)

June 15th, 2010 11:30 AM by Eric Fang

The low rate should stay low for sometime. But one thing is pretty sure:
it will not go lower from here.

Usually the rate should go higher in the summer time. I am not sure whether
there is any exception this year. Fed exited the MBS market after March 31st
and the good news is that the mortgage rates are not going higher, we should "thank" for the euro crisis, which help brings the rates lower.

US Treasury investment is still a save heaven for most of the mutual funds
and the foreign countries. Recently, China purchased a lot of the Treasury bonds and the popular PIMCO Bonds funds purchased a lot of Traesury. This will help the stabilize the bind market and the mortgage rate.

So we expect the interest rate stay low, but we all know the rate will eventually go up and market is very volatile, let's take all the opportunity to lock the lows.

Thanks for reading. Have a good day.

PS. I talked to one reader yesterday and he told me that he liked my blog, and he knows that  this blog is written by me(not copied from somewhere) from my English. I hope I can improve My English written skills in the future.

Posted in:General
Posted by Eric Fang on June 15th, 2010 11:30 AM



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