All Forum Posts by: Jack Pyle

Rates are going to bounce between 6.5% at the lowest to 7.5% this year. You can't time the market. They aren't falling back to 4%-5% range based on all current economic factors. You can get cash out refi at 6.625% right now with some points at 70% LTV with 780+ FICO. > $150k loan amounts.

Many people tend to think that the Federal Funds rate controls interest rates.  The Federal Funds Rate is the overnight lending rate that Federal Reserve Banks charge each other for overnight lending.  (We individual investors or Long term Lenders can't borrow at that rate) 

Mortgage rates typically follow the 10 yr Treasury yield.  This is because Mortgage backed securities are in direct competition with investors looking for "safer" investments backed by the full faith of the United States Government.  Investors pick MBS investments for a little more risk and a higher yield.

The reason rates didn't drop much last week is because they already did!  Take a look at the 10 year treasury yield on Aug 29 3.91%.  The day the Fed announced 3.68% and today 3.78%.  Anytime the media spits out news coverage on rates, it has already been baked into the market from Wall St. Investors.  

With that being said, the trend is our friend and rates are moving in the right direction.  It's just not going to drop dramatically overnight.