Don’t Bait a Bear

Having been running at full speed for the last five months and facing a few weeks of obligations that will take me out of the office and out of cell range, I have been looking for a little reprieve.  Emphasis on little. What we are seeing is an illogical selloff taking mortgage pricing back to the levels seen one year ago (see graph below).  Like the kids pictured, we are getting more than we bargained for.

A bear bond market is when pricing deteriorates and interest rates rise irrespective of the economic conditions.  That’s what we are seeing over the last ten days.  When this happens there is no way to predict a turn around the best plan is to take the cautious approach and lock in a fixed rate as soon as you can.

Having said that, I of course still hope that rates improve again expeditiously; I just don’t care to gamble with your money.




Bears Take a Breather

Looks to be a quiet day in a world usually fraught with anxiety-inspiring headlines and scandalous stories of those in positions of influence.  The beating bears are taking a breather, giving our mortgage bonds a chance to do the same.  The bond has been beat down almost 200 points since the beginning of the month, slimming profits and pushing interest rates (particularly on no-cost loans) up about a quarter point. It has been a fun month, and it looks to be over.  Watch for interest rates to come up another 1/4% by March. (???)