Dave Stephens' (future head of FHA) Rate Predictions

Dave Stephens sent the following e-mail out to all L&F managers and agents this morning...


Note the headlines coming today:

"Mortgage rates lowest in at least 39 years"

The reality is treasury rates are actually rising. The 10 year is the highest it's been in weeks. The reason rates are still low is due to the presidents plan that is buying mortgage securities.

This won't last indefinitely and rates will be rising. As the us needs to raise more and more money they will have to sell treasuries at lower prices/higher yields in order to attract investors.

My point - real buyers need to know that these low rates will not be an all spring/summer occurrence.