Rates Drop Below 5%

So here we go. The Fed has essentially signalled that it will fire all of its guns at once and explode into space (first to reply with that reference wins lunch), and that has turned the markets upside down. The 10-year bond is up a massive 200 basis points in the last 24 hours, but the FNMA/FHLMC bonds, though they were strongly up yesterday, are not following up today. There is a lot of profit-taking going on.

Therefore we are sitting in a curious spot. Rates are very good, better than I've seen them in 4 years, but not as good as I would have expected them to be based on yesterday's news. We are getting a big negative move in mortgage bonds today, giving back almost everything we got yesterday. That means that rates are changing program-by-program, lender-by lender about every half hour. You want a fantastic rate, you have to have someone standing by with his finger on the trigger.

That's what I do. I need a couple pieces of information from you and a target rate, and I can be ready to lock when we hit the rate you want. But you have to email me and let me know you're in the game.

More later.