Good afternoon! I thought it would be prudent to give a quick update on market trends given the recent news with mortgage rates. Yesterday the bond market reacted to the increasing Treasury note rates. The mortgage rates followed suit and rose with the reaction. We are still confident that we’ll see the levels we need to lock, but at this time we still need to get through the appraisal and begin the underwriting process to be at a point where we can consider locking. The dust will settle after the bit of shake up in the market yesterday.
Given the current economic conditions the government is going to be working very hard to help keep mortgage rates down. The recovery of our economy is highly dependent upon the recovery of our housing market. The Treasury thought the purchase of these mortgage bonds would keep rates down long enough, but in actually the money can only go so far. As the plan unfolds we’ll see these rates come down and we’ll be able to lock. At this point, patience may in deed be a virtue.
I appreciate your business and look forward to helping you with your financing needs!