[turbo6bar]

If the recent weeks are any sign of the future, mortgage rates will be uncoupled from treasury bonds. For the past few years, 30 yr fixed rates have trended about 1.3-1.5% above the 10 yr treasury bond. However, in the past 2-3 weeks, treasury bond yields have tanked, while mortgage rates have gone in the opposite direction, bucking a very long trend.

As RANDY P states, the market is changing rapidly. Loans are not being sold on the secondary market. Big lenders are deleting wholesale divisions (re: the brokers) and going purely retail. This indicates lenders are originating only loans that can be held in their portfolio or loans that can be sold to GSEs (Fannie, Freddie, Ginnie). So, for the first time in 3,4...5 years, lenders are actually having to evaluate the credit worthiness of borrowers AND get an interest rate that compensates for risk.

No one, including the bubble heads could have predicted when this would happen. We all knew it would happen. The only question was when. That question has been answered. Let's all rob tabs before we have to bend over and kiss it goodbye.