Another press release has arrived in my inbox, declaring a new low for mortgage rates. My initial response is: who cares! I don’t mean to sound like a jaded mortgage columnist, but the untold story on rates boils down to this: how come continued low rates have not caused home purchases to really boom? Well, I guess we already know the answer: a crummy employment picture (though it’s improving) and mortgages underwriting standards that are tighter than guitar strings. But one of these days – and maybe soon – a new class of nonprime lender may emerge to fund loans outside of the GSEs and FHA. How do I know this? There is thunder on the horizon…
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