America's #1 Mortgage Rates Report: September 19, 2008

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Mortgage and Lending with San Diego VA Home Loans/858-777-9751

Hold off on that rate lock.  The government is here to help.

I initially thought this massive government purchase of defaulted mortgage proposal would lead to higher mortgage rates, but quickly reversed course.  Here's me today, on Zillow Mortgage Blog:

This action is an obvious attempt to stabilize the volatile mortgage market.  His rationale is that this plan (a massive MBS purchase) will cost the taxpayers a lot less than the alternative. Whether or not that’s true remains to be seen.  He specifically references the “spread” or yield difference between treasury notes and mortgage-backed securities.  If the US Treasury is going to buy mortgage-backed securities to narrow that spread, rates will drop in the near term.

I think we'll see conforming 30-year fixed rates work down to 5.75% or below, next week.  Stay tuned.

Originally posted on Millionaire Real Estate Lender

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Rainmaker
57,704
Scott Barr
Pacific Sotheby's international Realty - Newport Beach, CA
Realtor

Brian my guess is investors will be back in bonds due to the volatility of the stock market. Hence, the drop in the 30 yr fixed rate.

Sep 19, 2008 12:50 PM #1
Rainmaker
231,121
Richard Byron Smith, NMLS #184479
Mortgage Loan Officer, Fairway Independent Mortgage Corporation NMLS #2289 - Chattanooga, TN
Mortgage Loan Officer

Do you think that the rush back into equities took a little money from mortgage securities. Maybe Monday and Tuesday folks will get back to buying MBS.

Richard

Sep 19, 2008 01:37 PM #2
Rainmaker
218,589
William Collins
ERA Queen City Realty - Scotch Plains, NJ
Property and Asset Management

Brian,

Thanks for the post. I am in agreement that the mortgage rates will drop further. Hopefully, this will help to stimulate real estate investment. There's still that little worrisome thing called "consumer confidence."

Sep 19, 2008 04:49 PM #3
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Brian Brady

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