What does 2011 Hold for Mortgage Rates?

According to a Reuters poll of dealers, bankers, brokers.....not too many folks share our outlook for another run lower in rates. 

It looks like 2011 is going to be one giant range trade. Such a wide variety of expectations....
A 10yr note yield at 4.00% would put "Best Execution" C30 mortgage rates between 5.375% and 5.625%

Obviously there is never a "definite" when you are talking about the markets and how they will behave under unknown conditions. (i.e.- no one could have predicted the horrible events in Japan recently and therefore no predictions could or would be made on how that may impact world markets.) So these polls are useful only in that they indicate "what should happen based on what we know as things are today." So to keep in perspective, this may be a gross overstatement of where rates will sit and it could be as big or bigger error on the other side and rates could be much higher. Either way, conventional wisdom does tell us that rates cannot sustain the low levels that we've all become accustomed to the last few years. In reality, without government intervention and their aggressive easing policies since January of 2009, we may have already seen rates rise substantially over where they currently are. It's obvious that we have been in a trend of rising rates for the last two weeks and things are never a straight line. For every .25% increase in rates, there will be a .125% decline in the short run. So a rising rate environment will STILL create brief windows of opportunity for homeowners and home buyers to take advantage of those little corrective blips and get a rate locked in. 

The most important piece of information and advice is simple but the best advice always is simple. Work with someone on your home financing options that you trust, that you know is keeping tabs on the volatile market, and is doing so with your best interest at heart. In order to do that, a game plan has to be laid out and then stick to your guns and you will always make out ahead in the long run.

Call or email today and it's a very simple process; we determine a time that is convenient for you to come by the office with the list of documentation I will provide for you when we talk. We set aside 30 minutes to discuss a plan of action and then we put it into place once we determine the most cost efficient means of achieving what is most important to you and your family. It may or may not result in a mortgage transaction at all but I think you will find it beneficial and informative and if nothing else, you will know that you are working toward a bigger goal and doing so with confidence that you may otherwise not have.

Hope to see you soon.