Why have mortgage rates dropped further today?

Richard,

Great points you make. I get asked why rates go up and down all of the time. I think these are great answers, but on some level, I suspect the correct answer is that there is a dude with a marionette controlling all the markets. He is toying with us. ;-)

Brian

Via Richard Weeks, REALTOR®, Broker, Vice President General Manager - Texas (Morris Williams Realty):

Mortgage rates have dropped further today due to:

a. Fall in the stock market

b. lower inflationary expectations

c. Federal Reserve purchase of mortgage backed securities

d. Federal Reserve purchase of long term bonds

e. Federal Reserve sale of short term bonds

f. all of the above

Lender Craig Jerrell says
The correct answer is f. "all of the above". 30 year fixed rates have fallen to 3.75% from 4.00% with the Fed actions.

It is hopeful this will spur sales, but unemployment, deflationary thinking and consumer confidence are still dragging the purchase market.

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