Is the Air Being Let Out of the “Mortgage Rate Bubble”?

To begin with, let’s analyze what has been happening to mortgage rates since my last post on the subject, just below and dated May 22, 2009. Since then, mortgage backed securities have plummeted after breaking below their recent trading range on May 23. While they have made back some ground, their virtual freefall has changed the overall outlook for mortgage rates, and may very well signal the beginning of climbing mortgage rates. The question in my mind these days is how high will they go and just how fast. Taking a look at the charts below will show just how fast they got worse and the potential speed at which they could rise in the coming months, if not years.

To read the remainder of the story, please visit Florida Mortgage Report

PS - I do not like writing excerpts, but I typically do not have time to rewrite the whole post. In about an hour, I am heading to the airport to fly home from Bolivia, so all I could do is add this excerpt and send you to the real post.