"Bang, zoom to the moon Alice!" Ralph Cramden used to say to his wife after one of her sarcastic remarks. Jackie Gleason could have been speaking about Mortgage Backed Securities the last few days of trading as they have spiked dramatically.
This is good news for anyone looking to buy a home and lock in a low rate, or for those with a home and looking to lower their interest rate and refinance. Higher prices for Mortgage Backed Securities mean lower mortgage rates.
Here is the chart for Fannie Mae securities the past 3 months, look at the huge spike each of the last four days of trading.
You can see when the debt ceiling negotiations began to gain traction and a deal looked imminent. Today's big spike occurred right after the Senate voted in favor of the bill.
How long with the rates last? Hard to tell, we kissed rates almost as low for tow days in October 2010. They then climbed a little, dropped election day in November 2010 and then spiked up right after.
Take advantage of these rates, call me to help you with the purchase of your home or to refinance your existing mortgage.
Dennis C. Smith, California Dept. of Real Estate Broker #00966315; NMLS #296660
Stratis Financial Corporation, California Dept. of Real Estate Broker #01269597; NMLS #238166
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