Mortgage Rates Drop! It Does Not Mean What it Used to

Ok - I have heard enough of the rampant speculation about how a 50bps drop in mortgage rates are going to save the housing market - I wish it were that simple. We don’t have a lack of liquidity in the mortgage market, we have a lack of qualified borrowers and major asset devaluation.

Remember folks, we have seen this happen a few times this year. Rates went right back up after the initial knee jerk lower. This actually happened yesterday as after the initial betterment in the morning, all banks re-priced for the worse multiple times yesterday paring back the rate improvement sharply. I am still not convinced that the low rates will last - I talk about in HERE.