The Law of Mortgage Interest Rates

By
Mortgage and Lending with Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate. LMB100023827. NMLS257576.

If the law of gravity is, "What goes up must come down", then the law of mortgage interest rates has to be, "What comes down must go up". No one can argue that rates have recently been the lowest we've seen for a long, long time. And we knew it wasn't going to last forever, but somehow we got lulled into a false sense of "low rate security". Even though the recent incline has been slight thus far, experts are suspecting rates will continue to rise. But no one is sure how long or how fast they'll go up.

Why the expectation of a rate increase? Because last Thursday was the last day since 2009 the Fed would be buying mortgage backed securities. If this is all "mortgage mumbo jumbo" to you, listen to this brief video from MSS to help you get a better understanding of why mortgage rates are so volatile.

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Opinions expressed here are the sole responsibility of the author, and do not necessarily reflect the view of Fairway Independent Mortgage.

Ruth Vogt Colorado Mortgage Lender Ruth Vogt, Sales Manager

 #LMB100023827, NMLSR# 257576

 Equal Housing Opportunity. 

 Regulated by the Division of Real Estate.

   www.ColoradoHomeLender.com

   ruthv@fairwaymc.com  303-881-7849.

 

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Comments (8)

Jane Peters
Home Jane Realty - Los Angeles, CA
Los Angeles real estate concierge services

Thanks for posting this, Ruth, and, I am going to reblog it.  I understood about one tenth of it, but I kinda get the idea.  Does't look to promising in the long term.

Apr 03, 2010 01:03 PM
Denise Hamlin, Broker/Owner
Cardinal Realty ~ 319-400-0268 - Iowa City, IA
Helping Happy Clients Make Smart Choices

Hi Ruth ~ I watched the video on Jane's reblog. Excellent information. Great video. Nicely put together for a lay person like myself to understand. I watch Bloomberg and sometimes find their analyses go over my head. This video didn't. It broke it down nicely and was very helpful.

Thanks,

Denise

Apr 03, 2010 01:23 PM
Mary Douglas
United Country Ponderosa Realty, Red Feather Lakes, Colorado - Red Feather Lakes, CO
REALTOR, Red Feather Lakes, Colorado

Hi Ruth, What a great video, nicely explained in simple terms.  If I were a buyer, I would try to get out there now, rather than wait and see what happens later!

Apr 03, 2010 02:01 PM
Dawn A Fabiszak
Private Label Realty ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!

Ruth ~ that is great information.  I am not looking forward to the rates going up.  We are having enough difficulties currently.

Apr 04, 2010 04:27 AM
Jackie Connelly-Fornuff
Douglas Elliman Real Estate in Babylon NY - Babylon, NY
"Moving at The Speed of YOU!"

Hi Ruth, this is the news we heard in our office from our in-house mortgage professional. It's easy to understand which is the way it should be. No "fluff!" Thanks for posting this :)

Apr 04, 2010 10:51 PM
Jill Schmidt
Aurora, CO

Ruth - I really like your take on the "what goes up..." quote.  Thanks for sharing the information.

Apr 05, 2010 05:06 AM
Ruth Vogt
Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate. - Colorado Springs, CO
719-592-0855 Apply 24/7 www.ColoradoHomeLender.com

Jane, thanks so much for the reblog, otherwise I would not have had the opportunity to hear from Denise!

Denise, I'm in the mortgage business and I have to admit most of what "the experts" say goes over my head, too! (I think that's what they want to be honest, that way you don't know if they are right or wrong!) ha!

Mary, especially first time home buyers... the clock is ticking on the HO credit!

Apr 10, 2010 04:11 AM
Ruth Vogt
Fairway Independent Mortgage, LLS. Equal Housing Opportunity. Regulated by the Division of Real Estate. - Colorado Springs, CO
719-592-0855 Apply 24/7 www.ColoradoHomeLender.com

Dawn, you are SO right!

Jackie, glad to hear that your in house lender is active in keeping you updates. That's not always the case.

Jill, I'm going to be in your office mid Monday... maybe we can hook up???

Apr 10, 2010 04:14 AM

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