What is going on with Mortgage Rates?

There is a saying on Wall Street, "Do not fight the Fed, you will lose every time" With that thought in mind, ask yourself what is the Fed trying to do? The answer is obvious. They want to take rates to zero across the yield curve. (The Fed rate is NOT the Mortgage Interest rate, however; it does have an impact on the Mortgage Interest rates). We will likely enter into a recession shortly so the last thing the Fed wants is for mortgage interest rates to climb. The Real Estate Industry drives this country, and with everyone in Quarantine, Buyers will not be out buying homes for the next month or so and Lenders will need to rely on Refinances to keep their business going.

So, stay calm and believe the Fed will win this battle as they always have. Here are charts of Treasury prices during the 2000 Dot com crash and the 2008 Meltdown. It is clear where we are headed, and the Fed always wins! Today the Fed purchased $32 Million in Mortgage Backed Securities - so rates should be going down again soon.

That being said... If you want to try to catch the wave when rates drop, contact me and let’s get your loan started.

Or go to my website to start online www.RealEstateLoanCA.com.

Click Apply now in the upper right hand corner.