By: Brian Brady
If you're closing your loan after Friday, I left you naked (not locked). I told you that the fundamentals of the economy would bring rates lower after the bailout was announced. Rates were at 5.875%, today they're at 6.5%. What's in store for the rest of the month?
Eric Holloman of Rate Link offers this two-minute research report about why "headline risk" should be replaced by economic data as a determination of mortgage-backed securities pricing. If he's correct (and I think he is), the next three days will be important for the direct of mortgage rates through the end of the year.
I'm still recommending that you float your Pasadena mortgage rates; I believe we'll see rates come back down under 6% within the next 7-10 days. If the economic data suggest that we are NOT headed for a recession,mortgage rates will stay in the 6.25-6.75% range. If the data are as indicative of a downturn as I think they will be, lower rates should be on the horizon. As always, keep checking back.
Originally posted on Long Beach Real Estate Home