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Twin Cities Real Estate|News, Views, Trends and Chatter A Real Estate Blog|by Alex J. Stenback
Last Week: Mortgage bonds, after rallying in the face of inflation figures from CPI and PPI that would normally force mortgage rates upward, lost some steam later in the week and finished on Friday only slightly improved. This left mortgage rates mostly unchanged to very slightly better for the week. This Week: Expect the markets to test Fannie Mae and Freddie Mac this week. The mortgage giants are under continuous and ongoing pressure, and we may see the Federal Govt step in some manner or fashion to recapitalize them in the coming weeks. Though anything can happen, this might help mortgage rates. Direct monetary intervention by the Federal Government should help narrow the widening spreads (spreads are the markets way of telegraphing perceived risk - the larger the spread between a "risk free" treasury security and mortgage backed securities, the more risk the mortgage securities are assumed to have) between mortgage and treasury securities, thereby bringing mortgage rates down. Maybe. The economic calendar this week holds some key data points for the markets to digest - Home sales (existing on Monday, new on Tuesday) and the minutes from the last Fed meeting (Tue) hit early in the week, while Friday brings the GDP report and a key gauge of inflation known as the PCE, or Personal Consumption Expenditures index - any signs of inflation here could make things worse for mortgage rates.
Last Week: Mortgage rates lost some ground early last week as inflation fears sparked a mild selloff in Mortgage Bonds. Mid week saw mortgage bonds claw back some lost ground on the heels of weak earnings reports (which hurt stocks,) and the Consumer Price Index, which posted the highest increase since the early 1990's. A consumer price index this "hot" would normally send mortgage bonds tumbling, and rates higher. In this case, it was mostly ignored by market participants taking comfort that the slide in oil prices will right the ship and inflation will moderate. By the end of the week, mortgage rates were essentially unchanged. This Week: A number of high profile economic reports to watch this week, along with a passel of consumer focused companies' earnings (Lowe's, Gap, Barnes & Noble) could make for a volatile mix as we watch both the stock and bond markets (remember, when stocks do well, it is often at the expense of bonds, which can cause mortgage rates to rise) impact on mortgage rates. On Tuesday, we have the Producer Price Index for July. A hot reading here could negatively impact mortgage rates, though given the markets non-reaction to last week's read on consumer prices, this data might also be ignored by the market even if it shows inflation. Housing starts and building permits also report tuesday, and while these figures are widely expected to be negative, any surprises of the "not as bad as expected" variety may help stocks and hurt mortgage rates. Later in the week, we have the Philly Fed Index, which measures manufacturing activity and is often looked at as a proxy for the national manufacturing picture. A strong number here could spark a rally in stocks and hurt mortgage rates.
We'd be remiss in not pointing out that the local realtor orgs have disgorged the July numbers. Jim Buchta at the Strib hits the high points: Home sales up 6.2% from a year ago. Pending home sales notched the first monthly increase in 30 months, still down 7.6% year-over-year An increase in sales and pending sales is touted as perhapsmaybe an early sign of a turnaround or "bottom." It might well be, but before we start toasting, remember a few points: 1. Sales are up, but at what price? Yes, more sales will help clear out the excess inventory, which is part of the problem, but lots and lots of sales at ever lower prices will not a turnaround make. 2. Month-to-month data on pending home sales can be noisy/volatile: A single month-to-month increase in the last 29 months is not necessarily a sign of a nascent turnaround. Simply that July was better than June. If we string a few of these months together, that may mean something, BUT 3. Pending sales are not closed sales: They are signed contracts pending closing. Nothing more, nothing less. In our experience, and from what we have heard from nearly everyone in the industry, (and with "lender-mediated" - foreclosures, short sales, etc. - sales accounting for something like 20-30% of activity,) the pull-through rate on pending sales is as poor as any time in recent memory. In other words, many pending sales, and more than what most would consider "normal" simply never make it past the contract stage, and don't close. (lots of reasons for this, but that is another post.) Says Jeff Allen, head stats dude the MAAR, (and creator of the research blog The Skinny) who was kind enough to answer a couple of questions on this for us: "Cancellation rates on pending sales are tough to quantify right now. Normally, we see closed sales follow a similar trajectory as pending sales a month or two later. We have not seen this same level of correlation recently." Jeff also promises a sexy graphic illustrating the divergence of pending vs. closed sales, which we will run right here if he can mash the data for us and make pretty.
Local: Today: Foshay Tower Becomes W Hotel [Metblogs] Key Player in North Minneapolis Mortgage Fraud Pleads [Strib] First Rate Mortgage: Final Sentencing, Two Years [Strib] Oak Grove Couple Charged with Mortgage Related Mail Fraud [Strib] Elsewhere and Otherwise: Housing Bottom Alphabet: Think "L" not "V" [Merkel] Fed Survey on Lending Standards: Credit More Tighter! [Kedrosky] Must Read: Understanding Alt-A Lending [Tanta]
Last Week: Mortgage rates were mostly unchanged last week. Early on, rates increased after Monday's PCE (Personal Consumption Expenditures Index - a key measure of inflation) pointed to elevated inflation, and on Tuesday, the Fed elected to keep rates unchanged. Said events did little to calm the fears of bond investors growing skittish over inflation. Second half of the week brought some relief as the dollar strengthened, commodity prices eased slightly (calming inflation fears somewhat), and stocks sold off on a negative vibe from Wal-Mart (slow sales warning) and a spike in initial jobless claims. End result, a round trip, with mortgage rates closing Friday right about where they started the week. This Week: For bond market observers (remember, mortgage rates are largely derived from bond prices) the seminal event on the economic calendar this week is the Consumer Price index (CPI), which hits Thursday. CPI is widely expected to show that July price increases slowed from the torid pace set in June. Anything short of that will likely push interest rates up, though continued easing of commodity prices, if such a thing materializes, could help to offset an unexpected spike in the July CPI. Stocks warrant close attention this week as well. Retail sales report Wednesday, and a lackluster showing here could push money out of stocks and into bonds, helping mortgage rates. If retail sales remain strong, expect stocks to suck $$ out of bonds and hurt mortgage rates in the process. Wal-mart and UBS also report earnings, and the state of these two behemoths could drive stocks in their own right.
"I figured out the hours I put into [selling that home] I made about 25 cents an hour so I could have just picked up change on the street and done just as well." Says local realtor Faith McGown after selling a home for a personal record low $30,000.00. Realtors the Latest Casualties of the Real Estate Market [KARE]
Local · Super Agents: real deal, or marketing schtick? [Ross Kaplan] · Home Building Slows to a Crawl [Strib] · It's a Landlord's Market [PiPress] · Sela Roofing: Owner Charged with Crookitude [TCBJ] · NIMBY: Affordable Housing in Apple Valley [Strib] Elsewhere & Otherwise · If you think Freddie Mac's loss was huge, check out Fannie [WSJ] · Why We Have a Foreclosure Crisis in the First Place [CR] · Video: Freddie CEO Syron Responds to NYT [CNBC] · Pending Sales: Once Again, the Media Gets it Wrong [Ritholtz] · Morgan Stanley Latest to Freeze Home Equity Loans [MSNBC]
Can we talk about risk based pricing? In the simplest of terms, risk based pricing is a system where the interest rate and/or fees paid for a mortgage vary based on the characteristics of both the borrower and the loan itself. Some borrowers are more likely to default. Some loan types, such as those with lower down payments, cost the lender more when they go bad. It really is a straightforward system designed to equitably align the costs and rewards for banks and borrowers by assigning a rate that, as accurately as possible, reflects the risk of default. It's a nearly universal practice in mortgage lending, and whether you know it or not, the rate you are carrying right now probably included at least one adjustment to the rate or fees you were charged. There are, quite literally, dozens of variables that can impact the price, or rate on a given mortgage, but the two most important are loan-to-value (equity in the home), and credit score. Generally speaking, the higher the credit score, and the lower the loan-to-value, the better your rate. We bring all this up because with defaults and losses on the rise (Freddie Mac lost $821 Million dollars last quarter) Fannie Mae is changing their risk based pricing fees, or "hits." At Fannie, these are known as LLPA's or Loan Level Price Adjustments, and this is actually the third such adjustment since November of last year. Take a look at this graphic (click to biggify), straight from a document called Updated Adverse Market Delivery Charge and Flow Business Pricing Requirements, which was released on Monday, right here. We can think of no better way to illustrate how down payment and credit score interplay to drive the rate you actually get. We've marked this up to illustrate what has changed since the last adjustment by Fannie. Some are for the worse (in red.) Some were for the better (green). The negative negative numbers are credits, positive numbers are fees. It's important to understand that the items in the chart are not adjustments to the rate, but to the price of a loan at any given rate. Adjustments can be paid (OR credited) in a lump sum, up front, as part of your closing costs, or as a slightly higher (or lower) rate. Here's a prime example of how the specific characteristics of the loan, AND the borrower can impact the cost of financing. For example, if someone with a credit score of 685 puts 15% down on a purchase, there is a .5% price adjustment. This means you can pay .5% of your loan amount up front, or take a rate that is .125% higher. If that same person had a credit score of 675, the adjustment balloons to 1.5% of the loan amount, or .375% higher in rate. On a $200,000 loan, that's a difference of $2000 up front, or $38.00 per month over a 30 year term. The moral of the story: Even as home prices fall, the cost of financing those homes will steadily rise, especially if you have imperfect credit and lack a big down payment.
It's become axiomatic that what led to the current financial & housing crisis was too much risk taken on by borrowers, banks, Wall Street investors, the real estate complex, et al. But could the problem have been too little risk? Steven Randy Waldman thinks so, and elegantly argues it was the relentless pursuit of risk-free return that lead to the current state of affairs. Emphasis ours: We've trained a generation of professionals to forget that investing is precisely the art of taking economic risks, then delivering the goods or eating the losses...until owners of capital stop hiding behind cleverness and diversification and take responsibility for the resources they steward, finance will remain a shell game, a tournament in evading responsibility for poor outcomes. Investors' childlike demand for safety has made the financial world terribly risky Brilliant thinking. There is much more.
Interesting little dust-up between the New York Times and Freddie Mac. The executive summary: NYT reporter alleges Freddie Mac CEO Syron was warned, ignored these warnings and should have known about looming problems with riskier loans in their portfolio. Freddie responds, stating that at best, this is revisionist history, sloppy reporting, and utter bunk. Also worth reading is Tanta's take-down of the NYT article over at Calculated Risk, and Jeff Miller's analysis of over at A Dash of Insight. This may seem like inside baseball to many, but it would be a mistake to ignore this. Legislators are already wielding the housing correction like a cudgel (which can be good, so long as they are crushing the right skulls) so it will pay to understand the facts in the rush to assign blame somewhere.
As you've no doubt heard, the Federal Open Market Committee concluded its meeting at 2PM today and announced that the Federal Funds and Discount Rate will remain at current levels. Though this will get plenty of coverage in the mainstream press, we wanted to take a moment to explain how this action may impact mortgage rates in particular. As you'll recall, when the Fed announces an interest rate decision, the decision itself is less important than the accompanying policy statement, which articulates the Fed's views on the economy, inflation and the outlook for future changes to Monetary Policy (rates, etc.) It is that document, (which makes up for being somewhat boring and often obtuse - except to mortgage geeks like this one - by being mercifully short) which can drive mortgage rates. You can read the whole thing in less than 30 seconds right here. What Does this REALLY mean for mortgage rates? Though it will take a few days for the dust to settle, the immediate result today is that rates are moving up - the stock market is up over 300 points as I type this - as money flows out bonds into a stock market that has taken the Fed statement like a shot in the arm. Expect to see this reflected in lender rate sheets this afternoon or tomorrow morning. From a broader point of view, within the context of today's policy statement, the Fed seems to suggest that an economic slowdown is more cause for concern that the presence of inflation, and it does not appear that a return to rate hikes is imminent. Silver Lining? Though the initial reaction looks to be higher rates, If the Fed is correct - that inflationary pressures will moderate - this may be good news for mortgage rates. It is useful at this point to insert a very simple rule of thumb that describes the relationship between mortgage rates, and inflation. Elevated inflation = Higher rates; Lack Inflation = Lower Rates In that sense, moderating inflation will will keep the door open for low, or lower, mortgage rates through the end of 2008. Also, don't forget, credit standards continue to tighten, so even if prevailing rates fall, the cost of financing (larger down payments, credit based interest rate adjustors or additional fees) may continue to rise.
If you were up early, you might have caught us at the Downtown WCCO studio this morning with Bill Hudson as we discussed the potential impact of homeowners walking away from mortgages worth more than their home. Check it.
Felix Salmon has up a great little graphic (via Jake at Econompic Data) based on a Businessweek comparison of the best and worst performing zip codes in major metropolitan areas. A very simple way of pressing home the point that despite the general negativity in the real estate market, some areas continue to appreciate, (and these areas tend to be of the long established and higher-priced ilk.) In the Twin Cities, North Oaks nabbed the top spot, marking 15% appreciation. South Minneapolis's 55409 (basically the Kingield neighborhood and other areas east of Uptown near 35W) zip code saw a 24% drop.
Last Week: Mixed economic news caused mortgage bonds to trade sloppy and mostly sideways for the balance of the week, though mortgage rates did manage an improvement of .125% by Friday's close. Specifically: The economy shed 51,000 jobs, according to the BLS. This was somewhat better than the 75K most expected, but the unemployment rate ticked up to 5.7%. The markets were encouraged at times by a dip in oil prices and an up-tick in consumer confidence. Fed to extend the emergency lending facilities, credit crunch not over. And, of course, the 698 PAGE housing "stimulus" bill was signed into law last week. See our comments on this here, and here. This Week: The bond market (read, interest rate) activity this week will be framed by the Fed meeting (Tue) and a tremendous amount of supply (newly issued bonds) coming to market. As for supply - any time there is a lot of supply in the bond markets, it can hurt mortgage rates by taking money that might otherwise be invested in mortgage bonds elsewhere. This week, a horse-choking $27 Billion dollars worth of Treasury notes and bonds will be sold, which may sap demand for mortgage bonds and push rates higher. The Fed meets Tuesday and will announce a rate decision along with a policy statement. The market is eager to know which front the Fed will be fighting on - the economy, or inflation. If the Fed statement suggests that inflation is public enemy number one (a point of view we would disagree with) then we can expect suggestive language about future rate hikes. Note that in the short term, a return to rate hikes may help mortgage rates improve by soothing inflation spooked bond investors. However, don't bet on the Fed getting overly hawkish on inflation just yet. As we mentioned last week, despite the higher prices for nearly everything, notably absent is the presence of any wage inflation (though personal income and spending both printed higher than expected this AM). This is important, because as painful as higher prices at the pump and at the cash register can be, inflation without wage inflation is not the sort of thing that will inspire the Fed to launch a shock-and-awe campaign to fight. Especially when our economy looks more fragile by the day and the credit crunch remains in full-throated roar. We expect the Fed will mention (but soft-pedal) the threat that inflation poses, and highlight ever so slightly the other threats and downside risks to the economy. A statement like that won't do much to improve mortgage rates, which would benefit from a hawkish, anti-inflation statement, so risks are tilting to the upside this week, in our view.
Graphic via Strib Steve Brandt at the Star Tribune with an interesting find: Foreclosure data for the first half of 2008 show that the number of sheriff's sales jumped 59 percent in suburban Hennepin, compared with the same period last year. But the number of sales is up only 20 percent so far this year in Minneapolis, and there are indications they are leveling off on the North Side, which has been the epicenter of the state's foreclosure crisis. Pure speculation on our part, but it seems that many of the foreclosures in Minneapolis, and especially North Minneapolis were of the more toxic variety, and simply went bad more quickly. There was fraud in the burbs, to be sure, but the declining real estate market will take its toll, resulting in more "natural" foreclosures (job loss, divorce, speculation) in addition to those of the shady and toxic strain. It may simply take longer for the foreclosure numbers to build in these areas.
via Ritholtz, via Slate As Bloomberg reports, the President signed on the line that is dotted, and the housing bill is now officially official. Bush signed the measure at the White House shortly after 7 a.m., spokesman Tony Fratto said. Treasury Secretary Henry Paulson, Housing and Urban Development Secretary Steve Preston and Federal Housing Administration Director Brian Montgomery were among those present. Be sure to check out our post from earlier this week on some of the key provisions that will impact homebuyers.
With the S&P Case Schiller Home Price Index posting record declines for May, the old adage holds: It Ain't Over Til It's Over. As for the Twin Cities, the decline was only very slightly better than the composite averages, as you can see below (click to biggify.) As we always point out, these metro area focused numbers may not apply to your own backyard, so for more specific city-by-city data, The 100, published by the Minneapolis Area Association of Realtors, is a great place to start.
Last Week: Another week of whipsaw action in the mortgage bond markets has passed. Early in the week, mortgage bonds were hammered by comments from Philly Fed President Plosser, then recovered ground Thursday on weak economic data, only to sell off again on Friday. All told, mortgage rates actually closed out the week very slightly better than they opened, but it was a white knuckle ride all the way. This Week: Anchoring a busy economic calendar is Friday's July employment report. As always, the non-farm payrolls report is a key measure of economic health, and can drive mortgage rates. It is expected that the economy lost 70k jobs in July. Any number substantially higher than this may improve rates, anything much lower may cause them to rise. As for the rest of the week, the employment cost index and GDP Chain Deflator (released Thursday) will give us a fresh read on inflation. Also on Thursday, the Chicago Purchasing Managers Index will take the pulse of the manufacturing sector of the economy. We are watching the employment cost index and non-farm payrolls report closely for any signs of wage inflation. Wage inflation is a tough thing to achieve when the economy is shedding jobs, but if a (wage inflation) trend emerges, we may see the Fed go on the offensive sooner rather than later and begin to hike rates. All of this is set against a fitful stock market: The "if stocks improve, mortgage rates get worse, if stocks get worse, mortgage rates improve" trade has been as reliable as any lately, and also bears watching.
Rotten Neighbor is entertaining enough, what with toxic hipster couples and all. But the banker in us has always found it far too subjective for any real use. For instance: We dig it when a certain young man in the neighborhood walks down the middle of the street rapping unintelligbly at top volume, arms uplifted and triumphant, headhone wires dangling just so. And when I pause in mid burger flip to appreciate his subtle stylings, and he stares back hard all "what?" the look I give him is one of kinship and genuine appreciation, as if to say "I hear you my man, rap on." But I can also see how this behavior might irritate the local rotarians and other sensitive types. Besides, unless you are a renter, entering your rotten neighbors is a self defeating excercise. Sort of a fatal flaw, no? Anyway, this little widget (that our man Dave over at Doodledee dug up) renders a Yahoo map (searchable by city) that allows you to see which of your neighbors are currently living in custody under the gentle ministrations of the Hennepin County Sherrif. Hard data. That we like, almost as much as amatuer a capella rap-synching. P.S. We'd build a clone of this for Hennepin County Foreclosures, but it might crash Yahoo Pipes (that, and we haven't the first clue how.) Anyone?
As expected, the omnibus housing bill was passed by the house yesterday. There's all sorts of housing related fine print in this bill, but here are what we see as the key provisions: 1. Raises FHA required investment (down payment + costs) to 3.5%, from 3%. 2. Abolishes seller-funded down payment assistance on FHA loans credit approved on or after October 15, 2008. 3. Abolishes FHA risk based pricing (higher rates or fees for lower credit scores) on or after October 15, 2008. 4. Provides $7500 tax credit for first time homebuyers on homes purchased between April 9, 2008 and July 1, 2009. Also worth noting: It is widely expected that Nancy Pelosi, Barney Frank, and Maxine Waters (a triumvirate of goofs if ever there was one) intend to introduce stand alone legislation to re-instate seller funded down payment assistance, and risk based pricing prior to the Oct 15th Deadline. Next step for this Bill is Senate passage, and presidential signature, which should all happen in the next week or so.
FHA seller-funded downpayment assistance programs (wherein the seller of a property makes a donation to a non-profit, and then this same non-profit gives this money to the buyer for their down payment) have been on Death Watch for years. HUD and FHA have tried to eliminate them at various points, only to be stopped by legal challenges from the assistance providers themselves. Looks like these programs will finally be killed, as reported by the Washington Post: The fate of these seller-funded down-payment-assistance programs has been in limbo for weeks. The Senate version of the housing bill would have banned them. The House version would not. Negotiators crafting a compromise bill have agreed to the Senate's position, which also is supported by the Bush administration. "We're going to yield to the Senate on that," said Rep. Barney Frank (D-Mass.) The root of the problem with these programs is, and has always been simple: They default at a higher rate. They have, at face value, been a legal end-run on FHA guidelines which requires borrowers to bring 3% of their own funds to the table. Also, in practice, the sellers aren't really paying anything, the sales price was simply inflated to cover the cost, and the buyers wind up with a larger loan. Now, the use of these programs was perfectly OK, and many very good homebuyers used them to great advantage, so none of this should be taken as an indictment of a homeowner that used seller funded assistance to buy a home. (full disclosure, a handful of our personal clients used such programs over the years. Mortgage bankers are not to judge, only approve or deny a loan based on the allowable programs and guidelines.) BUT as is often the case, a program that may be good for an individual family, may be a disaster when writ large across the entire spectrum of FHA borrowers (who skew toward lower credit quality in the first place.) And speaking of disasters writ large: ...seller-funded down payments present the single biggest challenge to its solvency. Borrowers who take part in these arrangements go to foreclosure at nearly three times the rate of borrowers who put their own money down, according to the [FHA] The FHA's solvency is at risk, and for them to execute their new role as the backstop for the home lending universe (a mission they did not ask for, but are going to get out of this credit crunch, sure as the world) these programs need to go away, and should have a long time ago. The taxpayers are the ultimate bagholders here. No word yet on when the ban will take effect, but in all likelihood they will still be available for the balance of 2008. More on this as it develops. In the meantime, if you are an aspiring homeowner, start saving, because the last true Zero Down option is having it's epitaph chiseled.
One of the broader points we try to get across here at Behind the Mortgage is that mortgage rates can and do move around due to factors that may surprise you. In fact, one of our very earliest posts, way back in 2004, showed how African Weather can impact mortgage rates. And it is not always material events in the weather or markets that move rates. Sometimes, words are enough. Especially if the words are uttered by the right guy (or gal.) Case in point, Philadelphia Fed President Charles Plosser, at something called the Philadelphia Business Journal Book of Lists Power Breakfast: Keeping policy too accommodative for too long worsens our inflation problem. Inflation is already too high and inconsistent with our goal of — and responsibility to ensure — price stability. We will need to reverse course — the exact timing depends on how the economy evolves, but I anticipate the reversal will need to be started sooner rather than later. And I believe it will likely need to begin before either the labor market or the financial markets have completely turned around. In english: He's advocating for rate hikes to start sooner, rather than later. This, predictably, sent mortgage bonds lower today, and caused rates to tick up. Get your power breakfast on. Perspectives on the Economy, Monetary Policy, and Inflation [FED]
Last Week: As we mentioned, rates jumped by .375% or so as the mortgage bond market sold off on inflationary news and renewed fears over mortgage related write downs, defaults, and balance sheet concerns at Fannie and Freddie. This Week: Spreads - a key measure of percieved risk - between safe haven Treasuries and Mortgage bonds are nearly as wide now as they were just prior to the Bear Stearns Debacle in March. Even the Prime Book of high quality mortgages is starting to labor under the strains of the housing downturn and credit crunch. Taken together with the ongoing concerns about inflation, the above factors do not create an environment that will foster lower mortgage rates. Ominous signs, if they persist. The economic calendar also holds some potential market-moving excitement this week. Home sales (existing and new) print on Thursday and Friday respectively. Durable goods orders are also worth watching.
If you are trying to follow mortgage rates, and all you have to go by are mainstream "big media" articles (such as the tear-out above) you will end up confused, misled, and frustrated. By the time they get around to reporting on interest rates, things have usually changed. Which has always been the case, but this week has been one of the best examples in recent memory of exactly how and why they get this wrong. And they get it wrong because the information used by most media outlets to generate the "mortgage rates tumble" type headlines above is the Primary Mortgage Market Survey (PMMS), published right here each Thursday, by Freddie Mac. And it's not that the fine folks at Freddie Mac don't know what's happening with the mortgage market - it's just that the data is a weekly average. And if you are trying to find out where mortgage rates actually are on any given day, a weekly average will tell you precisely nothing. Simply put, here's how averages will steer you wrong: At the end of a week when rates have been rising, the weekly average will lead you to believe that rates are lower than they actually are. If it's a week where they've been falling, you'll think that rates are actually higher than they are. Now, to the casual observer, this distinction may not matter much, and mainstream media articles touting weekly averages are not completely useless. But to someone who has purchased or is refinancing a home and needs to lock in a rate, following big media's lead is not only useless, but expensive. Ditto if you are using these sources to determine when to pick up the phone and call your mortgage banker to see about a refinance - the party may already be over. Now lets get specific. As we mentioned in today's earlier post, since the consumer price index was released on Wednesday, rates have shot higher by almost .375%. But if you read articles like this, you might believe that rates should be lower today than they were on Monday. And you'd be precisely wrong. In reality, and hindsight, the best time to lock in a rate in the last week would have been Monday. What's the solution? Read this blog, and find yourself a relationship with a mortgage banker that will actively and regularly keep you abreast of changes in the market. Don't leave this to chance.
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