Mortgage Rates Drop - but can they grow legs and gain momentum?

It was really an amazing day that saw one of the biggest single day rate drops i have witnessed in a long, long time. At the very end of the day investors issued a change for the worse but regardless, it was a breakthrough day.

I am currently hearing two schools of thought regarding the short term future of mortgage rates. Many say a rate correction is simply days away and this was all nothing but media hype.

Others believe mortgage rates can grow legs and keep falling.

I am now certain of one thing. When consumers refinance their house and mortgage business limps out of it's coma and shows some signs of life, any signs of life - well, it is a beautiful thing. If the governments intention was to spur on mortgage activity they are off to a great start but the momentum must build in order to sustain. Give me a refinance boom to shock the economy our of the great depression it is in and you must throw the word genius around.

Let this rate drop become nothing but media hype and we could see consumers and business retreat back inside their shell for a long winter...... But as of today there is hope. This is just what the Dr. ordered.

Maryland Mortgage Expert