STILL LOOKING FOR LOWER RATES

Mortgage rates have improved over the last 2 weeks. Current research indicates that the Federal Reserve will be working hard to push rates lower as they still have enormous supplies of treasury bonds to sell over the next few months. Foreign countries and pension funds don't want to buy treasury bonds, only to see bond prices lose value within days. Dropping bond prices and rising rates discourage everyone from buying bonds, if they believe the bonds will immediately lose value.
The Fed will work behind the scenes to promote lower rates.

I expect lower stock prices in the next few weeks which will help create a flight to safety. Those planning to purchase homes or refinance should be prepared to lock in rates soon. Mortgage rates have been very volatile, often changing several times within the same day. I advise clients to review their current mortgage needs now while rates remain historically low and determine what rate will meet their needs. I then track the rates and notify each person when their target rate is available.

I anticipate rates and stocks to whipsaw frequently in the months ahead. Eventually, more weakness in stocks should occur by September. This time period should be favorable to bonds and supportive of lower rates. Anyone with adjustable rate mortgages must carefully consider refinancing now while they can lock in low rates.