Well, what a birthday present. I awoke this morning to see the Dow Jones tanking down to mid-11,000's levels. While that was bad for investors, it was great for interest rates. For instance, interest rates were all the way down to 5% on a 30 year fixed at the lowest point in the day.
Great birthday present right?!?
HA!
If that was all that happened, sure...
At 11am, it all started. That's because it was 2pm Eastern Time, and lenders were starting to reprice their interest rates. The Dow Jones rallied hugely, and ultimately the lender repriced their loans 4 times in 1 single day! (I've never seen that before). This means that if you had 5% on a 30 year fixed this morning, well, after the repricing settled, you were now looking at 5.75% on a 30 year fixed.
This day will go down as a hair-pulling, crazy day. I hope these markets will cool down sometime so we get some normalcy here. Volatility is great, but it sure takes years off your life.
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