Good Day For Rates

Nice action today on the interest rate front. 10 year treasury yields took a nice dip and rates are following, though not as much as anticipated. This sometimes happens when there's a relative large move in yield intra-day. We'll take the 1/8th point and run though!!

I'm still thinking about the NAR February pending home sales report from yesterday. I really feel that we may be at or near the bottom of housing declines. Spring is here and homebuyers will be coming out to buy. The timing could be perfect to set up a nice second half of the real improvement in home sales.

Remember that increased home sales are nice for those looking to refinance. Increased demand brings up sales prices and appraised values for those in the midst of a refi. Home value security will bring the investors out of the woodwork to increase thier investment yields from safe-haven investments. This will decrease the mortgage spread and be icing on the cake for mortgage rates.

We'll take the good day for rates today, and look foward to a continued rebuilding of the housing and credit markets.

The author is a contributing mortgage consultant with the popular Refinance Tool Box. Visit today for free information and tools provided to help you learn about mortgage refinance.