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What leads to the feeling rates will stay down is the continued support of the US Government for one, plus the sense that foreign investors will come back into the US bond market strongly. In addition, large domestic investors are now in a buy mode for mortgage bonds (PIMCO). Plus, inflation may be showing signs of slowing, given current economic conditions and the price of oil dropping.

Overall, plenty of indicators of a favorable rate environment but, rates change throughout the day. It may be a good time to refi or purchase. Contact me to discuss. 312-863-9560.

Some things this bailout will not do is change the underwriting environment. It will continue to be very tight on qualifying standards. Jumbo rates and qualifying will stay elevated, for the most part. These loans are not purchased by Fannie and Freddie, so private sources need to fund them, and they are still suffering from low capitalization.

Underwriting is still as tight as ever.  Make sure you are working with a trusted advisor who can present you to underwriting in a way that will smooth the process.

Barbara

Your Trusted Advisor