X axis - date, Y axis - price (lower prices = higher rates)
It seems that Paulson & Co. managed to save his former employer (Goldman Sachs) and many other Wall Street firms with the most recent rescue plans. The stock markets are cheering. But the FNMA MBS market is not taking this well. The reversal we're witnessing has essentially wiped out the improvements we saw right after the announcement of the the Fannie & Freddie bailout. I expect we'll see an increase of 1/8 to 1/4% in mortgage rates today, and if this trend continues I wouldn't be surprised to see the 30yr fixed rate rise above 6.25% in the next week or two. But if there's something that the current market is teaching us, things can change in a heartbeat.
If you're still floating your mortgage rate, you may want to contact your loan officer ASAP to get some advice.
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