.75% decrease... How does that relate to mortgage interest rates? And is now the best time to refinance? Thanks.
It doesn't affect mortgage rates. Mortgage rates are tied to different indicies, like the 10-year US Treasury yield. As for the mortgage market, it's totally messed up right now. Much worse than it was even a few weeks ago. The 10-year Treasury yield has been dropping like a rock. This usually would be great for mortgage rates. Spreads have widened out dramatically though. Investors want a lot more reward for their preceived risk. You couldn't pick a worse time to get a mortgage than right now. It may be 2-3 weeks before the current volitility shakes out. Exactly where rates are going to settle is anyone's guess. I'm trying to place $150 million worth of mortgages right now and it's a mess. Bernard
Dead on, BUT I would say if you have very good credit (FICO of 720+ depending or scale) that this is a good time to buy. Prices are down, rates are down, and people are willing to loan to those they know will pay it back.
