If Fed drops rate and mortgage rates don’t drop…did it happen?

In a rates update from last week, I promised to keep you abreast on when the mortgage rates dropped as well.  This is that update…nothing has changed and if there’s been any movement at all, it has been slightly up, meaning you are paying more to borrow on your mortgage…not less!  How can this be?  Go back to my comments about what really moves the mortgage rates…large investors buying U.S. T-bills and usually in unison, Mortgage Backed Securities.  That is not happening and therefore, we are stuck in “Groundhog Day” (a salute to the Bill Murray film) with the same mortgage interest rates day after day.  So here is the most likely cure…I will not predict when this will happen, and most likely, the mortgage rates will soon come down to an expected quarter to three-eighths correction!  As promised, when and if that happens…I will be right back here to encourage you to call Michael Mitchell, Mitchell Mortgage at 707-337-5970 mobile, 530-406-2200 & 707-259-1117 landlines, and find out how I can get you in your next home loan!  Talk to you soon!