Mortgage Rates Dip to New Lows

October 8, 2010

Daily Mortgage Updates

Doug Katz Mortgage Broker
08 October 2010 – October surely has started out with a bang. This not the bang that you get when you light a firecracker and sit with anticipation of the inevitable glorious explosion. No, this is more like the unexpected bang that you get when someone secretly lights a firecracker under your chair. In short, we were once again surprised by a dip into new lows for Fannie Mae and Freddie Mac mortgage loans.

The interesting thing about this most recent drop is that there was no major economic news this week. The main driver for this and other recent drops in the mortgage marketplace has been the continued belief in favorable Fed policy. In previous statements, the Fed has communicated that they will likely purchase Treasuries to increase the money supply to further bolster the weak economy. This may or may not happen, but the continued stagnation in all sectors of the economy seems to be sending a message to investors that such a move is more likely than not.

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I am recommending that my clients closing in 15 days or less from today LOCK their rates. The Mortgage News Daily actually described it as “Gary Busey crazy” not to lock and I think that is better said than I could have myself. For those closing more than 15 days out, I would suggest FLOATING for now with a watchful eye on the markets for the best opportunity. This is especially important as any sustained positive news will decrease the likelihood of the aforementioned Fed policy.

As a post script, I do wanted to highlight that the movement in the mortgage market is at this point minor. Drops can be summed up in fractions of a percentage. So for those who locked last week, fear not, your rate is hair away from the lowest points in history. For those who are procrastinating, your potential gain is undoubtedly eclipsed by the risk. When the economy improves, these rates will be gone, possibly forever.

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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, on his own blogs, and Vet Money Matters. He's also on LinkedIn.

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