For those of you anywhere near New Jersey there a huge roller coaster that goes from o to 128 MPH is 3.1 seconds and shoots straight up 40 stories then straight down 40 stories, well to me that's what the markets have been doing. After the announcement yesterday that the government will be keeping short term interest artificially low for the next 2 years the bond markets rallied to the point that the 10 year Treasury hit 2.02% yield at one point but finished at 2.26% yield. This morning every indicator shows that this will continue and that the MBS (Mortgage Backed Securities) have already open up driving the interest even lower.
Yesterday I was quoting a 30 year fixed conforming loan on a 75% LTV purchase at 4.25%. The lowest I have closed a 30 year fixed in the last 2 years was at 4% and I think we are heading there again.
Please let me know if I can be of any help to you or your client's. All the best Jon firstname.lastname@example.org