How low can they go? (How strong is your stomach?)

Mortgage and Lending with HomeBridge Financial Services (NJ) NMLS 248937

Looking to buy or refinance? It is time to hop on a mortgage!

Unprecedented, that is the only word that sums up what we have been experiencing in the markets the past week or so.  Interest rates are in territory that we have NEVER experienced. For the first time EVER FNMA 2.0s traded last week. Effectively that means there are actually 30yr fixed rates available in the 2s now.

Putting this drop into perspective- the Ten Year Treasury averaged about 2.19% in 2019.  We ended the year with the 10yr just under 2%.  in the past few days that 10yr dipped as low as 0.3% and currently trading at 0.692%.  That is biggest swing in interest rates in history. 


Mortgages also have fallen, but not as much as the 10yr.  Low threes are the norm for most right now with the occasional two for high quality low LTV large loan amounts.  

This quick move in rates has caused them to stack up on each other, effectively making it almost necessary to pay points especially if your loan has an LLPAs (that's mortgage speak for Loan Level Price Adjustments or in English: add ons)

It is currently cheap to buy the next rate, and never before in my 3 decade old career has it ever made so much sense to spend a few dollars in points to save thousands over the life of your loan.

As fast as they have come down you can expect them to bounce back just as violently - historically the Up is much faster than the down... Until the market finds its footing we can expect a wild ride of ups and downs with multiple price changes.  There is no trend to rely on, just unpredictable swings both up and down and multiple times a day.

Things like Prepayment and servicing values have helped add to mortgage volatility. The market and investors are trying to navigate the uncharted territory. No need to bore you with the mechanics of the Mortgage Backed Security world- I'd just advise locking in, taking advantage and don't look back.

Buckle up and enjoy the ride!

Call me for all your residential lending needs!


Robert Rauf 
Mortgage Loan Originator NMLS# 248937 
or my blog: 
Office: (732)908-4868  Cell (732)740-0175

Since 1987 I have been helping my clients fulfill their dream of home ownership! HomeBridge Financial Services, Formerly REMN, HomeBridge Financial Services is located at 9 Grand Ave, Building 2 Suite A Toms River, NJ 08753. NMLS #6521. New Jersey Licensed Lender and Mortgage Banker #L041053. Visit for more information. NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey, Toms River NJ 08753, Toms River NJ 08755, Brick NJ 08723, Brick NJ 08724 Mortgage in Ocean County NJ, Mortgage in Monmouth County NJ, Jackson NJ 08527, Howell NJ 07731, Lacey 08731 08734, Beachwood 08722 Bayville 08721, 

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