Mortgage Blog

We may see the rate reversal as early as tomorrow

December 22nd, 2009 4:20 PM by Eric Fang

Remember I recommend to lock at the valley and float at the top? Yes we are at the top now(short term top). So the rate should go down as earier as tomorrow, if not, then next week(Jan is for sure).

Just read wallstreet journal today, the Fed is still trying to keep the rate low and they may not increase the rate till 2011.

That does not mean the interest rate will not increase. The MBS purchase will end in March, and Fed started reducing the purchase month by month recently. They may extend the purchase(if the economy still weak), or it will end in March anyway.

Will see the low rates of 30 yr fixed 4.625%, 15 yr fixed 4.25% again?15 yr fixed 4.25% still possible, 30 yr fixed 4.625% maybe a little bit hard. I hope you guys do not miss the boat this time. As I repeat it here again, Nov 27th/30th's rate is the bottom. We can lock any rate close to that level.

And don't wait. 

Posted in:General
Posted by Eric Fang on December 22nd, 2009 4:20 PM

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