How fitting that the day after the Fed's Open Market Committee lowered its rate for the second time in a week's time is also National Gorilla Suit Day. The media flood the general public with stories on the 1.25% combined rate cut and how that will affect borrowing rates, all the while leaving most of the story untold. Probably because it differs vastly from their two minute synopses. Mortgage rates have not declined by a similar amount and it is up to us, the mortgage professionals, to explain why to the many consumers who will be calling. It doesn't help us that some national advertisers promote the Fed's actions in their commercials as a reason for lower mortgage rates.
It is not unlike poor Fester Bestertester in the title story in Don Martin's 1963 classic "Don Martin Bounces Back". Every time he answers the door, what he sees is not what he gets. What we don't want to do is act like poor old Karbunkle, who is speechless and without an explanation for the surprises that await his friend. We should be ready with answers and be the experts the callers--our clients--expect when they ask the inevitable rate questions in response to today's news stories. I will address you to Matt Graham's blog which is highlighted in the left margin on this blog. If you want some detailed insight on what really drives mortgage rates. Don't be like Fester on National Gorilla Suit Day. It is not a pleasant way to spend the day after.