If you are an even casual reader of the financial news headlines you know that we've seen huge moves in the stock market. Yeah, I know.....that is an understatement!
Well, I need to share my observations from watching mortgage rates the past few weeks. Why? The moves have been quite historic.
So, here's the story.
A few weeks ago, the 30 year fixed rate mortgage was hovering around 6.0%. Then, it quickly shot up and hit a 2008 high at 6.875% last week.
This week, it came swooping back down to hit 6.0%.
I cannot even recall a time where I have seen a full point move in one direction and then have it come right back in only a matter of a few weeks. Ten years of watching this stuff and I've never seen this happen before.
Chalk this up as another unprecedented move in, as one of my friend's referred to it, "the financial whirlpool" of today. Well said!
So, as I type the 30 year fixed rate mortgage is hovering around 6.0% again. Where does it go from here? Well, I don't think it goes dramatically lower until the "hand of the Fed" drives it there. I haven't been able to see firm confirmation of that action yet but my gut tells me its coming.
The downdraft in home prices sweeping our country is not slowing yet. 2009 still will likely be a bumpy road. I still stand firm in my prognostication from 2 years ago in my belief that we won't have this in our rear-view mirror until sometime in 2010.
Act accordingly.
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