July 3rd, 2012 9:53 AM by Eric Fang
I did not predict the rate recently. And I know it will be a little bit lower till the end of this year.
The interesting part is another prediction I madelast year. This is about the ARM convert to 15 yr fixed.
A lot of my clients got 2.375% to 2.5% ARM ratesfor 400k loans. And some people will change it to 15 yr fixed if the 15 yr fixed rate will bein the similar range.
And yesterday I locked 6 loans with the rate 2.75% for 15 yr fixed(I don't have this rate today).We will see the similar trend coming in the next afew months.
Since ARM rate will go nowhere, if the 15 yr fixedrates going lower, then the rate will be similar.But usually when ARM rate and 15 yr fixed are so close,it will suggest another recision. But so far I didnot see this possibility in USA yet.