Each year, the staff at Superior Mortgage celebrates the season of giving by donating gifts to the Marine Toys For Tots Foundation. With over 150 Employees, Superior Mortgage supports our communities by collecting new, unwrapped toys for distribution to needy children.

Today the News media is reporting heavily on the Feds position to drive rates down to 4.5% by aggressively buying Mortgage Backed Securities. I believe the Fed will give it their best. They are signaling that this will be for purchase money loans. This is significant for many reasons. #1 that you need to know is that refinance clients that locked in last week in the 5.5 range should NOT wait to see what happens. 5.5% to 6.0% is a VERY historically low fixed rate. Refinance rates may never move lower and if they don't, they missed a chance at securing a great rate. One thing we know for sure, the market is unpredictable and gambling on what might happen is risky. The government has also made significant changes in direction in the past 30 days and could again. I wouldn't bet  on this latest move even though I believe they would like to see it happen for purchase loans.

Have a great day!

Steve Cors
CEO
Superior Mortgage Corp.

The lowering of the Federal Funds rate over the past two months by the Federal Funds Rate has caused a negative effect on long term rates.  This however, has caused shorter term adjustable rate mortgages to move into the mid to lower 5% range.   Long term rates, as the do approximately 80% of the time after a Federal Funds rate drop, have moved up to the 6% range depending on the points included in a rate quote.  The typical trend although not perfectly predictable is for the long term interest rate market to take about 20 to 40 days to settle into its marketplace driven balance.  This effect is just starting to show up as we enter March, therefore be ready to strike if and when the opportunity is ready.

Have W-2's, pay stubs, current mortgage statements, tax bills, homeowners declaration pages and bank statement ready.   

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The Federal Reserve decreased the Federal Funds Rate by 3/4% in an overnight move.  The drop caused a swift and immediate drop in the Treasury market which led to 15 and 30 Year Fixed Rate having a one day drop.  But, faster than 15 and 30 Year Fixed Rates fell they went right back up again.  It was so swift that very few consumers had they benefit of this drop.  The typical trend although not perfectly predictable is for the long term interest rate market to take about 20 to 40 to settle into its marketplace driven balance.