It is hard to believe that we are in the final lap of February 2008! This time next year we will be led by a new president. I hope who ever is elected will be able to help our industry. On my side I would love to see mortgage rates at an all time low again. I think this will help the general economy. This mornings economic news is kinda mixed so I have no clue how this is going to effect daily mortgage interest rates today? Usually bad economic news will send a positive message to investors to buy more secure investments, like the fixed treasury market. These markets with the mortgage backed security markets help define daily rates. Most peoples are surprise (who are not in the biz) to find out that, when the fed cuts rates, it sometimes has little impact to the mortgage market. Meaning rates may not go down at all. This last rate drop we saw rates actually climb! Also, most folks are surprised when they find out that rates sometimes can change 2-3 times per day, up or down. At this moment it looks like rates are ticking a bit up, but I think they will level and drop as more economic data is released later this month.
I have no idea why I decided to write blog today since I'm not ranting about something... I guess I'm getting swamped with question on why rates are not dropping faster with all of the recent Fed Cuts...
Any mystics out there want to take a gander on if the Fed is going to continue its rate cut pattern??
Thanks for your time