[SAJ]

This rise is much more a function of the temporary but severe confidence situation in bank lending of any type. The indicator to watch here is LIBOR, which, although improving sharply the past two days, is still very, very high on an historical basis.

Get LIBOR down 80-100 bps from here, and you will see the mortgage rate offers drop as if by magic. Patience, m'friend, patience.

One other thing of which you might not be aware. Any number of mortgage products have rates directly tied to LIBOR...which fact, needless to say, has not worked to borrowers' advantage in recent weeks.

[bp22]

For later...