This has been a familiar story over the last two months. Rates were at their lowest about 11 weeks ago. Over the last 7 days, mortgage rates have increased slightly everyday. They are now at their highest level in about nine months.
Rates will vary every day but if you are waiting for rates to drop before you lock in, it may be too late. Mortgage rates are affected by world events, not just what is happening here in the United States. Last Friday our unemployment numbers came out and that affected rates. The events going on in Egypt also have affected interest rates. At first, it caused some investors to move into the bond market which helped interest rates. Then as it looked like things were not as risky worldwide, mortgage rates continued to increase. Yesterday there was a federal treasury auction that did not go as well as expected and rates got worse. Today there was another auction that was better received, it helped to stabilize the market.
If you are debating on locking in your interest rate for either a refinance or a new purchase, look at where rates are today and if you are satisfied with the payment. If you are willing to gamble that rates may get better, you can do just that and gamble! You may win, but you may not. If you are concerned about where rates are going to go and you are comfortable with the current rate and your payment, lock in your interest rate now.
The only thing we can "guarantee" is that this is today's rate! Until we see tomorrow's rates, we don't know for sure what the market will do. And once tomorrow is here, today's rates are no longer valid. While mortage rates are higher than they were a couple months ago, they are still really fantastic!! If you are thinking about buying a home, it is still a great time to buy. Home prices are still very low and interest rates are still really great – the longer you wait, the more of a chance that rates will be higher.
Leslie Vanderwerf, NMLS ID#335509, Advisors Mortgage - Email – Website
