Post-Fed Mortgage Rate Strategy
Good morning everyone,
So, it's Thursday morning, the 1/2 point cut in the Overnight Rate by the Fed is behind us so where is this market going?
Well, this morning we can add to the mix the highest jump in the monthly unemployment number since the months after Hurricane Katrina back in 2005. Not good.
The general media is reporting a story I discussed months ago, that being that the Fed is behind the curve on how the financial contagion that first reared its ugly head with the collapse of the subprime mortgage market is not a subprime problem. Nope. The problem cuts across all credit grades and income brackets. The problem came from loose lending and easy money. Now, the Fed is figuring out that the ripples continue to spread.
Mortgage bonds are opening for trading up strong this morning. That is great news for mortgage rates to go lower.
I still stand firm in the prediction that we will get another big dip lower sometime in the next 4-5 weeks. That dip will probably be your best refinancing window of 2008. Don't miss it.
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