Mortgage Bonds continue to flirt with all time highs. Dancing with a Double Top pattern on the charts, where prices fall from their highs only to climb back up to test that same high. This creates a ceiling of resistance. Hence, our Alert to Lock earlier in the week.
While it’s human nature to try to time a market, I believe in the bird in the hand principal. Remember, Mortgage Rates don’t have much room to fall further, but the sky’s the limit when they move higher.
Hence, it’s prudent to lock in and drop later…What?
Yes, use a lender that allows you to re lock your interest rate after you locked it. Can’t find any? I’m not surprised, lender lock and drop policies are almost non existent, but not extinct. We at North Atlantic Mortgage have such a program available. For a one time fee you can re lock your loan before you close. So if you want to try to time the market, this is the safest way to do it. You get protection from rates moving higher and the benefit of a lower rate should rates move lower.
The Financial Regulation Bill was passed yesterday and will be signed by President Obama and become law.
No mention what so ever about Fannie Mae and Freddie Mac or the credit agencies responsible for the financial collapse. Unions and politicians get much more power and say.
Last week Greenspan said on CNBC that this was the first time the Fed was not asked to write this regulation and that it was basically written by junior staffers that have no clue about the complexities of these financial institutions that they are trying to regulate.
Greenspan said there are unintended consequences in every page of this bill. He said that any banker dealing with Washington is familiar with the 25 Cubed Rule… basically that the government is run by 25 year old staffers earning $25,000 a year and work 25 hours a day.. And a majority of them have never even financed a car… let alone a home, yet we are handing our regulatory oversight to these 25 year old staffers.
The Financial Regulation Bill was passed yesterday and will be signed by President Obama and become law.
No mention what so ever about Fannie Mae and Freddie Mac or the credit agencies responsible for the financial collapse. Unions and politicians get much more power and say.
Last week Greenspan said on CNBC that this was the first time the Fed was not asked to write this regulation and that it was basically written by junior staffers that have no clue about the complexities of these financial institutions that they are trying to regulate.
Greenspan said there are unintended consequences in every page of this bill. He said that any banker dealing with Washington is familiar with the 25 Cubed Rule… basically that the government is run by 25 year old staffers earning $25,000 a year and work 25 hours a day.. And a majority of them have never even financed a car… let alone a home, yet we are handing our regulatory oversight to these 25 year old staffers.
We recommend locking into rates as we watch to see if bonds can break through and stay above the ceiling of resistance.
Remember, Higher Mortgage Bond prices mean lower mortgage rates.
Fannie Mae 4.0% Bond: 101.91 +22BP
Remember, Higher Mortgage Bond prices mean lower mortgage rates.
Fannie Mae 4.0% Bond: 101.91 +22BP