Mortgage Rates Jump ~ Should You Lock?
May 28th, 2009 categories: Aventura, Market Trends, Real Estate News
In one of the worst days the mortgage backed securities market has ever witnessed the price of the Fannie Mae and Ginnie Mae 4.5% coupons dropped off a cliff pushing mortgage rates to their highest levels since November of 2008. Many lenders issued 4 or 5 rates sheets during the course of the day with each subsequent rate sheet indicating higher rates.
This melt down may adversely effect the Fed’s effort to stabilize the housing market by artificially keep mortgage rates low but we need to let the dust settle before panic sets in. The Fed has at it’s disposal several tools which it can employ to keep mortgage rates at current levels.
By the end of the day 30 year fixed rates for well qualified buyers were at about 5.25% with no points. To keep things in perspective prior to the Fed’s buying program the historic low for 30 year fixed rates was 5.125% so we are still in very good shape.
If you or one of your clients is buying or refinancing a home it will be very important to contact your mortgage banker who should proactively be managing your rate lock.
