Mortgage Rates Roller Coaster Ride

Over the past month and a half we have seen some of the lowest mortgage rates in history! In fact, we have seen THE lowest mortgage rates in history. Interest rates however can move and change in the blink of an eye. Mortgage rates are tied to the financial markets and therefore no one is truly in "control" of where rates are. If you take a look at the image in this article you will see three distinct and very different trading patterns relative to mortgage rates. The chart shows the price … [Read more...]

“Operation Twist” mean Lower Mortgage Rates?

The Federal Reserve made an announcement today that pushed mortgage backed securities higher than ever before. The Fed Reserve announced "Operation Twist."  In short, the Fed decides to sell $400 billion in short term securities and reinvest that same $400 billion in long term securities - specifically mortgage backed securities.  This move will support current low (maybe even lower) mortgage rates. Why is this important to what you and I do?  In the short term it is significant because today’s … [Read more...]