Believe it or not 2009 ended with higher mortgage rates than we had at this same time in 2008. From 12/31/2008 to 12/31/2009 Fannie Mae mortgage backed securities lost -165 basis points causing conventional 30 year fixed mortgage rates to rise.
We certainly had a very volatile year that at one point saw 30 year fixed rates in the mid 4's and as high as the low 6's. We ended the year right in the middle of those ranges.
2009 was a year of unprecedented market involvement by our government, yet rates still increased. We need to be very careful in 2010 as our economy slowly begins to awake from hibernation. As the economy grows, so to will mortgage rates.
I know you are busy and it is virtually impossible for you to keep track of what is going on in the economy. I monitor the trading of Mortgage Backed Securities; the only thing conventional and government mortgage rates are based upon. So, I know if there is going to be a trend reversal in mortgage rates.
Please call on me any time for an industry update.
About Us
- Fox Valley Mutual
- We are a licensed residential mortgage broker with offices in Geneva, Illinois and Evergreen, Colorado. We offer very competetive rates, low closing costs or no closing cost options, and we will close your file within 5-7 business days!
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