Hardly, said Broadwell. Broadwell said refinancing inquiries and applications surged as homeowners learned of the latest efforts by the Fed to bolster the economy by cutting short-term rates. The central bank trimmed rates by half a percentage point on March 20 and another half a point on April 18 - the third and fourth such cuts of the year. The Fed's cuts may have some small effect on mortgages, by slightly lowering the average cost of money, Van Order said. In periods of economic uncertainty, investors' money tends to flow from stocks into bonds, raising bond prices and lowering their yields.
Money flows back from bonds into stocks, forcing bond issuers to offer higher yields.
And investors are more likely to fear inflation, and therefore demand higher yields on bonds or other investments, such as mortgages. The interplay of so many factors is what makes the mortgage market so hard to predict, even to those who study it full-time. Last week, they were split nearly evenly, with 37 percent predicting rates would drop, and 42 percent predicting a rise. In one breath, Freddie Mac's Van Order embraces both points of view. But Van Order is unequivocal on the broader question of whether homeowners have missed the boat if they haven't yet acted.