Today's Fed funds level is nothing new. Here is what is happening

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

With all the talk of last weekend's Fed move- here is the history -

20yrs of Fed Funds

you can see we spent close to 8 years at today's Fed's Funds level, so it isn't anything new. What we have today that did not exist in 2008 is a lack of an appetite in the markets for ANY investment. The only thing experiencing a run up is the Dollar- with its biggest run up in 30 or so years. Investors are going to ALL cash- So in the mortgage world that means that even with Fed Funds near ZERO- we have Mortgage rates that are up quite a bit since the low we saw the first few days of March and actually a bit higher than where we entered the year. Currently it is making sense to pay points today more so than it ever did, a zero point rate is ridiculously high but a point or so will pay back in just over a year and may give you a tax write off. 

The only solid buyer of Bonds and Mortgages in the past few weeks has been the Fed.  The MBS markets improve slightly when they step in as a buyer but quickly sells off once they are done.  The sweet spot for rates has been in the mid 3's but that comes with about a point depending on the Loan Level Price Adjustments.  The market has ZERO appetite for any higher coupons which is making things very difficult for mortgages right now.

Need a good Mortgage guy? Call me. I can bore you with some more Economic fun and see how to best save you some money!



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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