Up Like a Rocket down like feather~ Rate rules

[Stephen Rinaldi]

For the past 21 years I have been monitoring and anaylyzing rates... The rule that rates go up like rocket and down like feather has been the rule of thumb for as along as I can rememeber .  In October we saw a jump it rates never seen before, as we enter in April it appears the feather is beginning fall.  

My first thought is why does it happen that way?   I actually think its more of a industry protection logic, if rates dropped a .5 points in a a day it would make national news.  Every person with a locked rate would be switching lenders and bedlam would insue.  Its just a guess but it does seem logical.

What does this mean to the investor or buyer. Rates slipping will mean value will increase, buying power will rise and a great opportunity to increase the spread between PITI and rent. It also may mean greater competiton.