March 11th, 2011 7:34 AM by Eric Fang
From the recently history, the rate will bounce back higher from this level. But this timemay be different.
We did see 4.75% 30 yr fixed rate for conforming; 4.875% to 5% for high-balance. This is the rate we did not have for a long time. Though it's useless for refinance except for those purchases, it is indeed a good trend to follow.
The loan programs will rotate sometimes. We already have ARM rates at history low again. The investors should balance their portofolio and buy morefixed loans. If that happens, the fixed rate should go lower.
We will not see new low fixed rates. Nov 4-5th of 2010rates should be the bottom rates. But we may be ableto see new low ARM rates again when more investorsare interested. Compared to long term bonds, the riskfor those ARMs are smaller.
Let's wait and see.