Mortgage Rates Sell Off and Bounce Back

Mortgage rate predictions have become a game of chance.  The world does not have a normal economy right now and we're seeing that play out inside of mortgage rates. 

For the most part, a weak dollar is bad.  For the past few weeks, it hasn't been as we've seen the best all-time mortgage rates.  For the most part, 10% unemployment is high.  Friday, it was well-received by the stock market and caused mortgage rates to jump.

Last week saw a large sell-off.  Mortgage bonds had been overbought for some time and needed a correction.  In total, last week saw anywhere from .25-.50% jump depending on the loan program.  We are seeing a rally today that has taken back about a third of what was lost last week. 

We're still sitting within .25-.375% of the best rates of all-time and .5% lower than where we were in mid-October.  Rates are low, but expect talk of economic recovery to chip away at them.