That was the exact point of my post. That even with the low 10 yr yield, mortgage rates are not as low as they were at this time last year when the 10 year bottomed at this level. Conforming are pretty close but other loan programs are not. The premium for moving mortgages on the secondary market is definitely the culprit. The fact that the 10 year has come down is what has kept mortgage rates where they are. If the secondary market remains this tight when the 10 year yield does reverse trend and goes up then we will see a more restrictive environment to say the least.

SD Realtor

ps = helicopter boy is in a tight spot… my wish is that he doesn’t touch the rate. However I give it a 75% chance that he will bow to pressure and knock it down at least 25 bp. I REALLY hope I am wrong.