Mortgage rates could go (back) down

The media caught on to the pitfalls of rising mortgage rates. As a result, more people are asking me if I think rates will go back down. The answer is a big "IF". However, I must credit Yahoo! Finance for this great article that documents why mortgage rates could fall.

Traditionally, my advice is, "If your 401k is doing well, rates probably aren't. If you're losing money, rates are probably falling." The article mentions this as one of the 5 reasons, along with widening spreads. Smaller spreads make it difficult to offer no points/no closing programs and limit a broker's advantage to knowing which lenders off the best rates on certain loan scenarios. Larger spreads will bring back that added incentive and allow brokers to present more competitive offers for borrowers. Sounds like a win/win to me!

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