April 30th, 2010 11:39 PM by Eric Fang
It was so interesting to see the rate going down again. That matched my perspective of the interest rates: the mortgage rates trap in the range. So basically our strategy is lock the rate at the low and float when the rate is high, especially for those who wants to refinance.
There are still pretty much interests for high balance 30 yr fixed of 5%; conforming 30 yr fixed of 4.75% or below and 15 yr fixed rate 4.25%, etc. The ARM rate is pretty low, if not the history low. But I don't think we will get those rate again.
I got lots of phone calls Friday about the rate prediction. Though I had very good reputation for the predicting the rates and trends in the last a few years, I have to tell you the truth that it's so hard to predict, and I have to do lots of reaserch.
We are at a very cretical level now. From my opinion, the current interest rate resistance level is very hard to break. In another word, the current rate level is at the short term bottom.
Will it go down? If there is no bad news, it should not. But who knows, I just read the WSJ tonight, and it said UK may have a little bit problems. But George Soros said that theri problem should be minor.
The next week rate should be flat, compared to the current level. Let's check one week later.