I frequent a very informational website called www.mortgagenewsdaily.com and listen to one of the smartest guys in the industry in my opion “Adam Q”. I took my job with this blog to simplify what he writes in a way that is easy to follow and easy on the eyes.  It is looking very likely we can start targeting 3.75% with 0 points if things go as planned for a couple days later this week or early next week.

“On November 3, 2010 I anticipate the Federal Reserve will announce another Quantitative Easing program. This event is expected to lead consumer borrowing costs back down to record lows, which means we should see mortgage rates dip below 4.00% with much more attractive float down structures   -Mortgage News Daily

5 Quick Questions Answered No One Else Even Made You Aware Of:

1.  Why You Chose to wait:

” If you’re still a passenger on the float boat, it’s because you made a decision to pass on rates below 4.25% in favor of a chance to lock in a rate below 4.00%. It’s because you decided to PLAY THE RANGE UNTIL BERNANKE PLAYED YOU” - Mortgage News Daily

2.  Did you know rates Have Risen 5 Of The Last 7 Days?

“Consumer borrowing costs have now risen in 5 of the last 7 sessions…and the nervous chatter in the air is deafening.  The best par 30 year fixed mortgage rates have risen to the 4.125% to 4.375% range for well qualified consumers. 4.25% is “best execution”. 4.375% is widely quoted.”  - Mortgage News Daily

Mortgage Rate Disclaimer:  Loan originators will only be able to offer the lowest conventional and government (FHA/VA) 30 year fixed mortgage rates to borrowers who have perfect credit profiles. If the terms of your loan trigger any risk-based loan level pricing adjustments (LLPAs), your rate quote will be higher. If you do not fall into the “perfect borrower” category, make sure you ask your loan originator for an explanation of the characteristics that make your loan a riskier investment. (eg. investment properties and second homes trigger an adjustment )

3.  What is my plan to get you into a 3.75% 0 Points

Last Friday we waved one last “Lock now or hold your peace until November 3″ warning flag….. - Mortgage News Daily

Plain and Simple:

“When QEII was first mentioned by the FED the Bond Market over reacted to your benefit.  The excitement then wore off and the “traders” took advantage of the correction by making profitable transactions.  This led to an unexpected short term trend of rising rates, one Adam Q expects to run out before November 3rd.

***READ******   On November 3, 2010 I anticipate the Federal Reserve will announce another Quantitative Easing program. This event is expected to lead consumer borrowing costs back down to record lows, which means we should see mortgage rates dip below 4.00% with much more attractive float down structures”   -Mortgage News Daily

4.  Why won’t it just keep going lower?

“Do I think mortgage rates will go lower than 3.75% if the Fed announces QEII?

No I do not. Why don’t I see rates moving below 3.75? Because I don’t see 3.0 MBS trading in enough liquidity to allow lenders to offer rates below 3.75%. This is a bold prediction considering we don’t know exactly what the Fed is plotting.  If 3.0s do trade in size, lenders will be able to go as low as 3.25%”     Mortgage News Daily

5.  How long do I think QEII will keep mortgage rates at the record lows??

These rates only hit their record lows for a day or two before they bounce up a little, we want to hit the lowest part.  Adam Q. brought up another interesting point:

“I fully anticipate another dip in home prices over the winter. If you’re waiting to refinance and you know home values in your area have already been negatively affected by foreclosures, make sure you keep track of sale prices in your neighborhood, especially if you see “HomePath” signs hanging in the front yards of homes for sale in your area.  You don’t want to miss an opportunity to refinance at  record low rates because your home lost another 5% in value while you were waiting for borrowing costs to go even lower.” - mortgage news daily

What if the Fed chooses not to announce QEII on November 3, 2010 ???

“If QEII is not announced, the bond market would sell off and mortgage rates would suffer, instantly. The 3.50 MBS coupon would become illiquid and the best par 30-year fixed mortgage rates would move up to at least the 4.375% to 4.625% range for well-qualified consumers.”
Adam Q = Adam Quinones -

Now I realize the majority of this blog was quoting Adam Quinones, but I think the value comes from simplifying what he is trying to say so you can understand how important it is to be proactive rather then reactive to the news.  Please call me at the number below because I have a plan for you to be one of the few ready for this.

Michael Kelleher
Phone: 781 477 0110 ext 132
Mobile; 781 367 0068
Fax: 781 477 0220
www.MYATMI.COM
MB3255  Lis. # 50041
324 Essex Street, Swampscott, MA