July 2nd, 2010
It’s beginning to feel like Groundhog Day in the mortgage world. Unbelievably, rates have continued to drop. Once again the equities markets have under-performed and the resulting flight to quality is fueling demand for U.S. Treasuries and, in turn, mortgage backed securities. Record or near record lows have been the norm for a few weeks.
The main consideration going forward is one of timing. These rates cannot and will not last forever. Most industry professionals are forecasting a spike or steady rise in rates once greed replaces fear in the markets. I am advising most of my past and present clients to take advantage of the current environment while they still have the opportunity.
On a good note, Congress finally decided to act on the Homebuyer Tax Credit. The extension passed late Wednesday, the same day it expired. Buyers who fit the criteria and who signed a contract prior to April 30th now have until September to close their deals. This will not do anything to drive new purchases, but in this market, you take what you can get.Email This Post To a Friend.