Orlando Mortgage Blog

The Chinese philosophy of Yin and Yang apparently applies to our financial market today too. There's bad news and a tad good news, though the Chi certainly isn't in balance yet. Whoever or whatever you believe has caused the current and ongoing financial fiasco in this country, the S&P downgrade late last Friday has gotten the attention of anyone with a buck in the circle over the last few days without a doubt.

With the HUGE DOW swings of 6-700 points wobbling worse than a drunken sailor (that should be enough metaphors) fence jumpers are seen everywhere at the moment. From stock market investors asking if they should bail before it gets any worse to mortgage shopping fence sitters jumping on what have been some truly remarkable rates in the last few days to a week. Bad for one person. Good news for someone else.

I certainly can't claim to know what's going to happen with rates 5 minutes from market opening or any time during the day in this market, just look at yesterday's 700 point DOW swing down to up and if someone does try with any certainty...run now! I can say that lender treasury departments have held it pretty close to their vest in the last few days trying to ride it out. ARM's and No Closing Cost options haven't benefited. Their existing pipelines are kindling in large market moves down, they know it, so all of them price as conservatively as possible until things level out somewhere. The plunge on the 10 yr bond has moved points and therefore rates in small increments but certainly not as much as smaller moves up will normally drive the herd rates up on the slightest whim. Ain't it the truth though?

So the 10 yr was at 2.22% +/- last evening and we haven't seen that since the 2008 financial crisis. Here's what I will say to anyone willing to listen. If you are eligible and haven't already applied and pinned down these great rates because you are still waiting for your rate nirvana, at least help yourself by being ready to jump off that fence. Have all your documents ready TODAY to complete a mortgage application. That way whenever your rate bell is rung you can do what you have to do to be able to lock it. Complete applications are required by every lender to lock a rate. Don't be one of the "Coulda/Shouda" crowd who loses out because you weren't ready when rates jump back up as they always do. Talk truly is not cheap.