What a long and windy wall this mortgage business is making us walk on!  Rates are up and down every day, with such extreme volatility that it makes it impossible to predict where they will be from day to day.  This week, the rates began high and are now dropping a bit due to the Treasury printing dollars and throwing them out the window before the ink dries.  

Will this be an effective measure to lower the cost of mortgage rates to where they should be?  I would like to say yes, but can only predict no. Why do I think the rates will stay above what they should be?  The interest rates should be below 6% and stay there according to actual indicators.  However, the interest rates are now based on Global Markets and the salability of mortgage pools.  As I have said before, these pools are not as readily saleable and are priced higher on the market due to risk and shelf life. 

The government has also tried to increase conforming loan limits, but lenders really do not want to do them, so they are pricing them higher than they should be.  FNMA and FreddieMac have also upped their credit and loan to value standards to above impossible for the average guy to meet.  All in all, these efforts have not helped out the needy.  Not really sure what to do with this information?  Call me. 

Dale Siegel