I just read a horrible blog, and I just read a great one. Kevin Sandridge in Winter Haven , you were the good one and I have included a link for you.
I think I will preach on this till I am blue in the face. Mortgage rates are based on Mortgage Backed Securities and not the 10 Year T-note. Plus, when the Feds cuts the Funds Rate the mortgage rates tend to rise. I can show you time after time that it has happened.
Yet, I still read Average Joe LO out there telling everyone that rates will go down. Yeah, the ones that the banks lend money to each other at not the ones they lend to home buyers and home owners in Indiana or elsewhere. What is nive that my phone will ring more after the Feds make a move like the guys on Wall Street are anticipating here this week. That is when I shine and I get to teach and educate everyone the truth about these rate cuts and what it does to the Mortgage Backed Securities.
Heed, my warning if you have an LO telling that rates will go down when the Feds make a cut, Kick him or her out of your office for they know not what they are talking about! All, I can really tell you is that historically, rates tend to rise when the Fed makes a cut.
Dave Woodson - the Mad Mortgage Machine
Helping bring sense to the Mad Mortgage Process
An Indiana Mortgage Home Loan Lender
Comments(3)