Best Rates of 2010!

Nothing but good news today as the Mortgage Backed Securities market soars into highs of 2010. These recent gains in the Mortgage Backed Securities market have lead to lower interest rates for consumers. Not to put too fine a point on it but we are now at highs of the year which will lead to the lowest offered rates of 2010. This is due to an inverse relationship between the MBS market and offered rates. When the MBS market goes up, interest rates for home loans will go down, conversely when the Mortgage Backed Securities market goes down, interest rates go up for consumers.

Below you will see a 6 month graph of our market.


As you can see we have been enjoying a sharp upward trend over the last 6 weeks leading to these lower rates. Many looking at this graph may feel as though these gains are sustainable and this trend will continue. Although we may enjoy further gains, currently I do not think our market can go very much higher (leading to lower rates), and, at least for now, have entered a new range. Before we move on to the next graph, let me point out the red arrows that I included at the end of March (you may have to enlarge by clicking). These arrows represent the Fed exiting the MBS market after infusing 1.25 trillion over two years. This downtrend demonstrates just how quickly our market can correct itself. Be careful waiting for rates to move much lower.

Now let's set that thought aside for a moment and look at another graph, this a one month snapshot of our market.


This graph represents how I believe our market will settle after the market digests these recent gains, namely a new range slightly higher from our last. This will lead to lower offered rates as long as we stay inside this new range or breakout above it (which I think is unlikely)... all things considered this is great news for people in the finance markets looking to secure long term debt on a low fixed rate.

If this is you I recommend you contacting us immediately so we can begin discussing your options moving forward.