Mortgage Rates Quickly Approaching 7-Month Lows; Fannie Expects March Rate Hike; Goldman’s $5bln Settlement

Mortgage Rates Quickly Approaching 7-Month Lows; Fannie Expects March Rate Hike; Goldman’s $5bln Settlement

Mortgage rates surged lower at the quickest pace of the year today as stocks and oil prices continued suffering heavy losses. At present, investors are fleeing from these riskier assets and seeking safer havens in the bond market, including the bonds that back mortgages. As demand rises for bonds, rates fall. Some of the more aggressive lenders are now back down to quoting conventional 30yr fixed rates of 3.75%--the lowest since late April, 2015. There's no telling how long the current trend will last. Just yesterday, the momentum was showing signs of wavering, and here we are today with the strongest day of the year. The lesson is that rates remain much more dependent than normal on the fluctuations in stocks and other markets. As long as investors are abandoning other assets and seeking the