The extent to which Mortgage rates have fallen since the Fed’s QE3 announcement is nothing short of astonishing. Beginning on the day of the QE3 announcement, rates have fallen every single day since, crashing through previous all-time lows in the process. This is the first time in history where the average daily improvement has been bigger AFTER breaking previous all time lows.
In other words, the positive momentum that carries rates lower usually starts to taper off after hitting all-time lows. In the past we’ve tended to move lower only in small amounts and with scattered instances of pull-backs to slightly higher rates before continuing slowly lower–a staircase of sorts. But the current rally is much more like a slide. From 3.5% best-execution 2 weeks ago, we’re now well into 3.25% and more lenders opened up pricing availability under 3.25% today!