Rates Continue to Improve

Mortgage bonds are holding their gains so far this morning, as the market waits to see if last week’s break above the strong ceiling of resistance is real. It’s too early to say if this move is sustainable or if bond prices will come crashing back down beneath the new floor. Mortgage bond prices are being supported by the 10 Year Treasury Note yield which is on the verge of breaking beneath 2.4%. This is an area that we have not witnessed in over a year. In fact, it was during the massive bond market meltdown that we last saw yields at current levels. This is providing a great opportunity for those needing to purchase or wanting to refinance.

Many have been surprised by the recent dip in mortgage interest rates. It was a very small percentage of economists who believed this would happen. For those who used the false projection of higher mortgage interest rates to spark fearful decision, there is a great lesson to be learned here. By following the masses, many consumers have paid large amounts of money to buy down an interest rate. I want to reiterate that I strongly believe people getting a mortgage should lean towards a no-cost loan. If rates happen to continue to fall, a no cost refinance can be done six months later. This is a no-brainer. If you’d like to review the overall savings, please reach out and have one of my team members help.


Although there is no need to immediately rush to lock, I’m worried that we could see a pull-back happen. So, if you choose to float, do so only if you are able to closely watch the markets.

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