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02.08.16-Climb a ladder, roll the dice and land on a chute. Is it a short chute or a long one?

2016 is turning out to be a life size game of Chutes and Ladders. Stock markets and oil are following each other lower again and chasing money to Treasuries and Mortgage Backed Securities.  Even lower rates are coming!!!

We have dropped in and out of the 1.80%'s in Treasuries and have been back and forth all morning. A closing in the 1.70%'s could be bad news for Real Estate and Mortgages, this could be the bottom mark & the catalyst to send us sailing higher faster than we can lock the lows. So pay attention and don't let your clients wait for the bottom, by then it will be way too late. Lenders will certainly take back their yields faster than they give them to us and at twice the speed.

We have a relatively light number of Economic reports this week with Yellen testimony Wednesday and Thursday. Jobless claims come out Thursday morning and Friday reports are Retail sales, Import Price Index, Consumer sentiment and Business inventories. These are all market direction reports and may turn out to be the only good news this week or just may add to a huge week of stock market losses. Mounting losses in stocks this week and Treasuries ability to maintain yield in the 1.70%'s with out big gains in stocks will help lock in the lowest rates we have seen in over a year.

I see many lenders waiting to see if these lows can be maintained before releasing even lower rates for us to use. Because of the fast pace of the rise and fall of Treasuries and Mortgage Backed Securities the issuance of the real rates could cause a huge influx of loans that the lenders are not staffed to handle. Market volatility is very stressful on Lender's trying to hedge whether this is a short term dip or long term. If you see a sustained closing of the 10 year Treasury in the 1.70's with minimal gains in the stock market we will see these rates come down yet again.

We are close enough to the bottom to announce it to your clients and any further waiting would be an error in judgment. There is very little room at the bottom to offer a float down option without insane charges to buy down. If you or your client feel trapped in a rate do not hesitate to call. A ready to go purchase can be closed in as little as 10 days with all of my lenders. You should never feel trapped by your rate. 

DON'T WAIT CALL NOW! 

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