Important Trend!

If you have been watching mortgage rates trying to figure out when they are going to get better, the below chart may tell you what you need to know.  As you can see, over the last 3 months the 30 year FNMA bond has hit a ceiling of resistance you see at the top of the chart as a red line.  It corresponds to 101.45 on the left or R2 on the right. 

This ceiling effect tells us the chances are slim the 30 year FNMA bond will improve past this level. 

When the bond price is up, rates go down. 

So in this chart, our best mortgage interest rates were seen on March 4^th (last Thursday/Friday), Feb 5^th, and Dec 18^th. 

Mortgage rates are at the present levels because the government has been buying bonds at a lower return than what investors were willing to take.  This buying has kept mortgage rates artificially low since this started in January of 2009. 

The Fed has made it clear they intend to stop purchasing these bonds in 21 days (March 31).  Consensus among the analysts is rates will go up .50% following the Fed's exit. 

What is your strategy for getting the best rate for your refinance or purchase? 

I strongly suggest you consider taking action now, as all indicators point to higher rates in April. 

 What do you think rates will do after March 31st?