November 4th, 2010 3:20 PM by Eric Fang
Q: For some lenders, 30 yr fixed rates around 4% to 4.125%.Do you think the rate will go lower in the future?
A: Not much lower rate until trading coupon is ready.
Q: Could you please elaborate on this?
A: The current lowest rate is 3.75% for 30 yr fixed if youwant to pay with some points and closing cost. There are some trading coupons for this rate. If you want to have 3.75% to 3.875% with no closing cost at all, we should see the trading coupons for teh rate 3.375% to 3.625% first. Those coupons not ready yet. So we will not see much lower rate than 4% anytime soon.