Mortgage Rate Down as Credit Begins to Thaw

Mortgage rates will open the week significantly lower as last week showed signs of credit beginning to thaw in the interbank, commercial, and consumer markets. Much of the positive downward pressure on mortgage rates occurred on Friday as the market dodge forecasts of doom prior to opening. Investors are still skittish and react dramatically to each news clip and market whisper. So, expect continued volatility in rates. However, keep in mind the US government is focused on increased housing affordability. This is likely to force long-term dissent and stability in mortgage rates, with market movements causing lots of short-term volatility.