- The Federal Reserve unveiled two aggressive efforts Tuesday to free up consumer credit, committing $800 billion to reduce mortgage rates and unfreeze the asset-backed securities market. The impact on mortgage market was huge.
- Mortgage rates had one of the biggest one day drop. Rates fell from 6.33 to 5.25 for 30 year mortgage in one day. Some brokers were quoting lower than 5% yesterday. It was the biggest one-day drop in at least seven years. Mortgage brokers were ecstatic.
- If you are on variable rate mortgage it is time to act. But you have to be quick to take advantage of these drops, the mortgage market is volatile so locking in these rates is key. Expect a stampede at mortgage brokers office today.
The best trade of the day
The best trade for today is refinancing your mortgage.