Mortgage Rates Decline, but...

Mortgage rates continue to show slight declines, but look at it as a temporary trend or if you are a borrower a fleeting opportunity. Mortgage rates continue to decline on momentum-type trading from marginal good news like declining oil prices, rising oil inventories, and on expectation housing indicators. However, steady for some rate jolts as uncertainty gets closer--inevitable Fannie Mae and Freddie Mac bailouts, Fed's need to address inflation by raising short-term rates, and growing spread between the 30 year fixed mortgage and the 10 year treasury. Corrections are on the horizon. Expect major shifts prior to labor day.