RATES Drop!

Today we saw the largest rate drop I have witnessed as an originator.

Unbelievable - in my head I cannot comprehend this usually banks will give back only a little at a time. Or is it just a coincidence that 30 days ago rates were at their lowest then the banks raised rates due to high volumes of loan applications then continued to raise rates to show Mr. Bernanke who wags the Dog?

One Quarter of a point down to 5.75% on a 30 year fixed Not bad. Not Bad at all. For those who are looking to get into a home the next 27 days will be one of the best windows for you to write a purchase agreement. When the Fed meets we will be faced with similar trends - and at that point the trend will not be your friend. UP UP UP - so commit now!!! I'm sure there is a drummer in West Des Moines that has heard similar voices in his head but today we talk about home buying not relationships.

It's only Thursday - chances are rates may tick up a little tomorrow as the banks hedge on the weekend but my call for next week is "Hang On".

Are we having fun yet?

sk