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Is the Air Being Let Out of the “Mortgage Rate Bubble”?

To begin with, let’s analyze what has been happening to mortgage rates since my last post on the subject, just below and dated May 22, 2009. Since then, mortgage backed securities have plummeted after breaking below their recent trading range on May 23. While they have made back some ground, their virtual freefall has changed the overall outlook for mortgage rates, and may very well signal the beginning of climbing mortgage rates. The question in my mind these days is how high will they go and just how fast. Taking a look at the charts below will show just how fast they got worse and the potential speed at which they could rise in the coming months, if not years.

To read the remainder of the story, please visit Florida Mortgage Report

PS - I do not like writing excerpts, but I typically do not have time to rewrite the whole post. In about an hour, I am heading to the airport to fly home from Bolivia, so all I could do is add this excerpt and send you to the real post.

Posted by Florida's #1 Mortgage Planner on 05/31/2009 08:00 PM

Comments (5)

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5 Comments on Is the Air Being Let Out of the “Mortgage Rate Bubble”?

MAY

we need rates to maybe creep up a bit.. that will get buyers off the fence

Robert,

Surprise, surprise, surprise! What's a few trillion in debt! The inflation is coming in amounts beyond our ability to image.

The most useful and only positive conclusion I can draw is buy now at low fixed rates, then pay it back with inflated dollars!

God help us.

Happy Landings!

Bill

PS: China and the rest of our erstwhile trading partners may live to regret undermining us!

Robert - I enjoyed and was again informed by your article. While I don't think we will concur politically, we are in agreement fiscally. I hope many (if not all) folks take note.

It was very informative. People do need to take note. I do think that the rates will come back, but again....what's a thought? It's just a thought. Take the deal while the rates are as low as they actually are.

JUN

Robert: Thanks for the post. A couple of us out here feel rates will tick back down (witness last Friday's correction) before starting a long, inexorable rise up, perhaps to as high as 7%. Thanks again! Take care.

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