Wednesday, May 27, 2009
Mortgage Backed Securities started off mildly down today, then the bottom fell out and we were on the Tower of Terror. Can anyone say elevator DOWN! The market lost 207 basis points today. In the time I have been monitoring the market, I have never seen this kind of drop. What does that mean to everyone out there? It means that interest rates are going to be on an elevator UP! We have already seen rates move from 4.75% this morning to 5.5% this afternoon. Don't let this information scare you, though. 5.5% on a 30 year fixed rate is phenomenal. This is still a great time to buy and take advantage of all the government incentives and programs available. Call me or email with any questions.