Nov15- Quantitative Easing- Ineffective & Potentially Dangerous

Rates are experiencing upwards pressure, as of late last week and early this morning, although the uptick is being felt in conforming rates, yet hasn’t yet affected non-conforming rates.  We are up a quarter of a point over last week’s pricing, and about a half a point from a month ago.  Although rates below 6% cannot be considered high and/or exorbitant, borrowers get quickly entrenched in “getting the best low-rate” mentality, and will flinch a little when they (the borrower) doesn’t think they got the “best deal”.
Rates look like they will be highly volatile for the time being, as bond market investors are reacting to one of the Federal Reserve presidents making commentary in a speech on Sunday.  Fed Reserve President, Jeffrey Lacker of the Richmond Federal Reserve, said he voted against the last round of QE2 (quantitative easing) measures because he (Lacker) feels the QE policy will prove ineffective and is potentially dangerous.  We will continue to advise borrowers to “lock as soon as possible”, and hope for a float-down window of opportunity.