As the market opens higher on Hope and Obama happiness, mortgage rates increase.  All the Fed fluff about rates going down to 4.5% and mortgage activity increasing has done nothing but create phone calls and cocktail (cheap beer not cosmos) conversation about how the rates are going so low, that it is almost free!!

 

Again, I beg the media to stop spreading rumors about rates and stick to the weather and Bush bashing.  As I sit here, the market is up 300 points, the T-Bill yields are up 10 ticks and rates are higher than they were Friday and again higher than Thursday.

 

What all this false fluff is causing is false hope.  What people are doing now is waiting for their promised rate to go below 5%.  If the rates go up to 7% and people lost rate locks of 5.75%, they simply missed another opportunity to better themselves. I say if you have a great rate or need a loan now do not wait and miss this window of opportunity.  Remember, all these government guys that are chatting up the low rates will be out of jobs come the new year.  Is this waiting for an opportunity or simply greed?

Dale Siegel