Mortgage rates have been changing like the easterly wind over the past 10 days. We haven’t seen this kind of volatility in a very long time.
The Feds recently announced another Quantitative Easing (QE2) to support the bond market. Investors make critical decisions ahead of any anticipated market changes. Therefore, any impact on mortgage rates resulting from QE2 had been felt ahead of actual easing.
Investors smelled the $600 billion QE2 as a move toward pending inflation and it sparked a major sell-off of mortgage backed securities that drove mortgage rates from all-time lows to a 10-week high in just 5 days.
The movement in rates is happening FAST. Lenders are changing rates up to 4 times per day now. That means that the quote you received at 10 am is likely no good by 2 pm.
This Refi Boom is over !!
If you are one of those who stood lurking nearby for months now thinking you could get a 3.00% rate, that’s not going to happen.
Jump in and lock a low rate if you still can. Don’t get caught in the rate storm that occurred back in May 2009 when mortgage rates skyrocketed by 1.25% in a mere 10 days – as many might remember.
Til my next post . . .
Somerset New Jersey Mortgage Rates
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