UPDATE - Mortgage Rates Will DROP Today - November 25, 2008

Bonds and Mortgage Backed Securities (MBS) opened well in positive territory this morning after the Feds announced a program to purchase up to $100 Billion in direct obligations of the Government Sponsored Enterprises (GSEs) (Fannie Mae, Freddie Mac, and the Federal Home Loan Banks), and up to $500 Billion in mortgage backed securities.

• The 10 Year Bond opened up 1-6/32 from yesterday's close and is currently up 1-14/32
• FNMA 30 Year Mortgage Backed Securities (MBS) opened up 1-7/32 from yesterday's close and is currently up 1-21/32

Remember, on MBS, as the price goes up, the yield goes down - and so do mortgage interest rates.

This news alone has caused rates to drop by almost .50% - that right a half of 1 percent - overnight! If you have been waiting to buy a home or refinance a mortgage, now's the time. Lenders will be swamped with business, so get your loan in!