I just don’t know if they can. Rates as low as 4% for a 30 year fixed loan are virtually unprecedented in our life time. If you are waiting for rates to go lower I just don’t think they are going to. I reveiwed the history of the ten year bond recently and over the last 60 years there has been only one other time the yeilds have been this low and that was during the economic freefall we experienced in 2008. If you look at the average values of real estate in 2006 coupled with the 2 percent higher interest rates and look at the demand then, one can only assume we are at the bottom looking up. Call me with questions or concerns. Happy to help all of Sonoma County home owners. “Hunt for your loan”.

Bonds followed their recent trend lower in early trading. Pressuring Bonds lower is the strength in the Stock market as well as the exorbitant amount of Bond supply hitting the markets next week.
In related news, the New York Federal Reserve is continuing to purchase Mortgage Backed Securities. However, their efforts are just not enough to absorb the flood of new closed and securitized mortgages that are hitting the market after the heavy refinance activity recently.
Overall, Bonds have muscled back higher from the lower levels seen earlier this morning. Therefore, I recommend floating for now, as we watch to see if Bonds can regain some ground. I will continue to monitor the situation and keep you posted if a change occurs.

Bonds woke up angry this morning following yesterday’s sell-off, and are now struggling to regain their footing and move back above an important level of support.
On the news front, Initial Jobless Claims were slightly higher than expectations and continue to be a drag on the economy. However, continuing claims fell by 148,000 to 6.69 million, which is the largest one-week drop since November of 2001.
Next week brings another round of Bond supply from the Treasury, which could weigh on the Bond market. Therefore, I recommend locking but I will let you know if Bonds are able to reverse course and muster another rally.
Currently rates are trading in the 5.5% range for a 30 day lock on a 30 year conforming loan for a point in origination.