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Unbelievable yields in the treasury markets today, resulting in the lowest yields we've seen in 50 years.   30 year fixed mortgage rates closing in on 5.250% today w/no points, 5.00% for a 15 year fixed.  Everyone on CNBC talking about a second allocation of the government TARP assets to be geared towards buying mortgage backed bonds this coming Monday.

While the talk on TV is centered around the rumor that the government will force mortgage rates down to 4.5% this coming Monday, we have to look at the possibility that it's really just a rumor.   If Monday comes around, and the Treasury doesn't buy the expected allotment of mortgage backed securities, we'll see a quick sell off in the bond market, and higher mortgage rates.   We recommend our clients take advantage of today's current mortgage rates by locking in before the weekend, to avoid any potential increases in mortgage rates next week.