2012-09-24 — mortgagenewsdaily.com
Despite recent press indicating that QE3 isn't affecting mortgage rates, the movement last week and today is rather impressive. When rates move lower, we typically see them shift gradually from one Best-Execution level to the next. This was the case several weeks ago when 3.5% regained its position as the most prevalent Best-Execution rate after a brief stint at 3.625%.
As markets improved rapidly following the QE3 Announcement, 3.5% began to give way to 3.375%. Now we come to the impressive facet of today's rate sheets: Best-Execution has effectively blown right through 3.375% and is arguably 3.25% today at many lenders.
This is typical in the early phases of QE, but Gentle Ben's Mortgage Market Manipulations (tm) typically do not stick after the full cycle of the program is complete. Of course, maybe this time is actually different, being open-ended...
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