Mortgage rates are at near record low levels. And, for our own re-fi, – would you believe the bank is concerned that I mis-spelled the name of my second cousin, fourth removed and forgot to mention the $15.00 that I won at the slot machines at the Peppermill in 2001.
But seriously, The mortgage backed security market (MBS) is reaching new highs. This means that the mortgage interest rate is reaching new lows. and, at least in our case, the banks are very reluctant to lend. The want us to behave as if we are trained seals, demanding that we jump through one hoop after another.
Mortgage backed securities continued to rally on Wednesday, closing within a quarter point of all time highs. As is typical during holiday shortened work week’s, most lenders did not pass along the improvements; however, the rates we saw on Wednesday were still near record lows.
The most recent situation is being blamed on the situation in Dubai, of all places. Apparently, Dubai is experiencing a major financial meltdown, much like we already experienced here in the US. It seems that they are also having difficulties making their debt obligations.
Consequently, the big money runs to safety. Can you imagine that US securities constitute a flight to safety? This means that US mortgage rates should move slightly lower.
So, if you can, refinance as much as possible, and as soon as possible.