Mortgage Rates Are Back Near Historic Lows!

 I have been tracking the ups and downs as Fannies are trading for quite some time now, and since the initial uptick this spring we have had a flat market. Don't get me wrong, there have been some crazy days with big swings and entire weeks that were nail biters.... BUT: if you tracked the ups and downs there were so many weeks that ended up unchanged by the closing of the market on Friday this summer that rates would look pretty flat if you were to graph them.

For almost 5 weeks we have seen Fannies trading slightly higher each week. With all this improvement in the price of Mortgage backed securities we have seen the yields on thirty year mortgages drop near levels we have not seen since the bottom we saw earlier this year. With Wednesday's and Thursday's auctions fairing pretty well and the market has been happy this week as well.

If the market continues down this path we may see interest rates drop back to the 4's we briefly saw early this year. We are darn close now. A Highly qualified buyer CAN get into the high 4s now pretty easily.

This may be the time! I still am worried about the Federal Reserve backing out of the credit markets. (That is happening in a month) When they do the crazy Supply and Demand issues kick in... Too much supply and one less buyer can lead to lower prices and higher yields.

Have a great week

Rob

Robert Rauf

Mortgage Banker

www.RobertRaufHomeLoans.com   or my blog: http://activerain.com/blogs/rrauf

(732)223-1630 x102

Since 1987 I have been helping my clients fulfill their dream of home ownership!

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