What's the bright side to a 200 point drop in the Dow? Yet another rush to Treasuries that pushes the 10-year yield below two percent; that, in turn, means even lower mortgage rates, right?
Maybe not this time.
Mortgage rates are already hovering near historic lows, with the 30-year-fixed heading toward four percent, but unlike home prices, experts tell me mortgage rates do have a bottom...a bank-imposed bottom.
"Because they [banks] don't have to go lower on the rates to get business and because they make more money if they don't go to the lower market rate," says Guy Cecala of Inside Mortgage Finance. "It's also a way to manage a potential flood of refi calls."