Already At All-Time Lows, Mortgage Rates Continue Lower At Unprecedented Pace

Sep 24 2012, 2:05PMMortgage rates begin the week at new all-time lows yet again after falling significantly from last week’s series of previous all-time lows.  Markets have been quite calm during domestic hours, but interest rates moved slightly lower overnight before domestic trading hours.  With bond markets holding steady to slightly improved since then, mortgage lenders continue to pass on those improvements in the form of more aggressive rate sheets.  Despite recent press indicating that QE3 isn’t affecting mortgage rates, the movement last week and today is rather impressive.  When rates move lower, we typically see them shift gradually from one Best-Execution level to the next.  This was the case several weeks ago when 3.5% regained its position as the most prevalent Best-Execution rate after a brief stint at 3.625%.  As markets improved rapidly following the QE3 Announcement, 3.5% began to give way to 3.375%.  Now we come to the impressive facet of today’s rate sheets:  Best-Execution has effectively blown right through 3.375% and is arguably 3.25% today at many lenders.  Regardless of the spread between the yields of mortgage bonds on the secondary market and the Best-Execution interest rates, this is as fast as rates can move lower.  That they have done so at all time lows is even more impressive.

via Already At All-Time Lows, Mortgage Rates Continue Lower At Unprecedented Pace.

This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s