Rate Recap For This Past Week

Down, down, down.  That's where rates went.  Why?  The following is an excerpt from MBSQuoteline:

"Uncertainty about the pace of the economic recovery caused investors to shift to relatively safer assets, including government insured mortgage-backed securities (MBS). Also positive for mortgage markets, the economic data released this week showed that inflation remains extremely low. As a result, mortgage rates declined during the week, reaching the lowest levels of the year."

Chinese banking officials indicated that they will tighten their monetary policy to reduce inflation.  There is also concern about the pace of economic growth in Europe.  This type of uncertainty typically results in a move to safer assets creating a greater demand for mortgage-backed securities.  With a greater demand, the yields on these securites do not need to be as high.  Mortgage rates tend to follow these yields...MBS yields go down, rates go down.

Great news for those looking to purchase a home as mentioned in my post from yesterday.  Please feel free to email me with any questions.