Originally posted by: Corn
Obviously the fact that bank rates are down around 1% or less has no bearing on the Mortgage Industry.
Anyone who has even a rudimentary understanding of how capital is securitized for mortgages knows that the Fed rate has absolutely nothing to do mortgage rates. Generally speaking, the short term Fed rate may follow similar trends to the long term bond market as a whole, but it is not contributing factor of any real significance. This myth is created by marketing "professionals" and repeated by loan officers who can't even accurately explain the difference between APR and the note rate.
Ah, but if you only worked retail,
Corn, you'd know about all those dumbass customers who call the day the Fed lowers rates a 1/4 and demand their 1/4 off too...
"Rates went up? What kinda scam you tryin' ta pull? I heard the Fed just lowered 'em!"
sigh...
And I seriously doubt that rates are headed up past 8%. And there will
always be a market for refi's, people always need money. Just not always for FNMA/FHLMC rate-and-terms...
edit: anyway, this is old news. Rates started going up June 9... I even saw it coming and locked a ton of loans at the bottom.