Mortgage Rates Undulate on Fed Policy Statement and Housing Data

September 24, 2010

Daily Mortgage Updates

Doug Katz Mortgage Broker 24 September 2010 – There is a training aid used for astronauts called the Vomit Comet. It is an airplane that moves on an elliptical path to simulate a weightless environment. In short, it basically moves up and down to keep the occupants in a suspended state. This is the best comparison that I can muster for mortgage rates over the past few weeks. We are all floating in a Lending Vomit Comet and this week was business as usual.

Mortgage rates started the week strong with a major rally on the heels of a policy statement from the Federal Open Market Committee that they would provide additional support to bolster the economy. Since rates cannot get much lower, the belief is that they will purchase Treasury Bills to increase the money supply. Bonds and mortgage rates reacted favorably. Additionally, higher than expected new jobless claims set the stage for a great week to lock. Data on the sale of existing homes increased by over 7%, however, which gave lenders pause putting negative pressure on mortgage pricing. So, we were again basically flat.

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My recommendation for those with loans in process is unchanged. I am recommending any of my clients closing within 15 days to lock their rates due to the unpredictable nature of the market. For clients closing more than 15 days from now, I am recommending floating with very keen eye the market for lock opportunities and to act quickly on mortgage market improvement.

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About Doug Katz

As the Senior Mortgage Banker and Sales Manager for Chicago Bancorp, Doug not only originates loans for his personal business, but also oversees affiliations with banks and other financial institutions that depend on Chicago Bancorp to meet their client’s lending needs. In this role, Doug directs the day-to-day mortgage sales operations of over 25 branches in a multitude of Chicagoland’s diverse communities. He brings to these relationships a wealth of industry experience and a dedication to an exceptional client experience that has established Chicago Bancorp as Chicago’s pre-eminent mortgage solution providers. Prior to joining Chicago Bancorp, Doug attended and graduated from West Point. Upon graduation, he was commissioned as an officer in the United States Army Artillery, where served 5 years in numerous roles and in various deployments include service in Kuwait. In addition to his Bachelor’s Degree from West Point, Doug holds an M.B.A. from Loyola University Chicago, where he was also inducted into the Beta Gamma Sigma Honor Society. He also served as President for the West Point Society of Chicago from 2003 to 2005 and still serves on the Board of Directors. When not working, he spends his time with his wife and three children in their hometown of Oak Park, as well as pursuing his passions for fitness, cooking and the banjo. Doug can be reached by phone at 312.738.6079, by email at doug@chicagobancorp.com, on his own blogs, BankerDoug.com and Vet Money Matters. He's also on LinkedIn.

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