Mortgage Update? Tuesday December 14th 2010
Rates are on the move AGAIN! The MBS Market is down over 100 basis points again and rates are headed for or are already at 5%. I will keep you posted through the week.
Why are rate going up? The risk of inflation has increased which creates risk on the yield of the mortgage backed securities. This has caused the mortgage bond prices to fall.
There are two main factors in the global economy driving this fear of inflation. One is the extension of the US tax cuts which will keep the national debt high and China announcing they are taking measures to slow their economy to head of inflation. See my video for a detailed explanation.
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Olan Carder American Security Mortgage ocarder@1asmc.com www.charlottemortgageonline.com 704-910-1456 – Work 980-721-7478 – Cell License #97565
Great explanation Olan. I was considering refinancing soon. Last month I could have gotten 4% or lower. I just talked with my mortgage broker and now he’s quoting me 4.75% ouch!
Let’s hope this “risk of inflation” stays steady. Many people have already re-financed but there’s still more home buying to be done!
You would think that this news would get buyers who have been sitting on the fence motivated, but many will still not buy. And even if rates get to 5% they will still be historically low.
I am also thinking of refinanced. Any updated advice? Thanks Olan.
it’s crazy how these things can snowball, definitely not good news for a recovering real estate market