It can be hard to find sanity after a blood bath like yesterday, which is dog-piled on top of a tough 2 weeks for interest rates. Especially, now that taking all the coupons into account, it is now apparent that today was the worst single intra-day for MBS’s since they’ve been tracked.
But look at the “big picture”, which I found myself reminding un-locked home buyers and their agents of today: –that it does help to see visually. Below are the fixed rate mortgages every 12 months during MY LIFETIME as captured at the end of each year. With this past November to December being the all time best, (the black dot I marked below), and today being the purple dot I marked… doesn’t seem so bad. Particularly when you over lay that on top of home affordability. NOW IS A GOOD TIME TO BUY.
And for the general economy - good to know that home prices are going up, and delinquencies are at their lowest since the meltdown started. And it’s also nice to note that rarely over the last 40 years, do rates hit a bottom without some retreats within short ¼ to ½ point ranges.