Great points you make. I get asked why rates go up and down all of the time. I think these are great answers, but on some level, I suspect the correct answer is that there is a dude with a marionette controlling all the markets. He is toying with us. ;-)
Mortgage rates have dropped further today due to:a. Fall in the stock marketb. lower inflationary expectationsc. Federal Reserve purchase of mortgage backed securitiesd. Federal Reserve purchase of long term bondse. Federal Reserve sale of short term bondsf. all of the aboveLender Craig Jerrell saysThe correct answer is f. "all of the above". 30 year fixed rates have fallen to 3.75% from 4.00% with the Fed actions.It is hopeful this will spur sales, but unemployment, deflationary thinking and consumer confidence are still dragging the purchase market.