The END of Ridiculously Low Rates?

Mortgage Rates Begin To Move Higher

Stronger than expected economic data pushed mortgage rates a bit higher again this week. Following a string of weekly drops since the middle of June, mortgage rates have now risen for two straight weeks.

Over the summer, mortgage rates have fallen substantially. Weaker than expected economic reports and the debt crisis in smaller European countries caused investors to reduce their forecasts for economic growth and produced a flight to the relative safety of government guaranteed bonds, resulting in the lowest mortgage rates in decades. Now, however, some investors are asking whether they can fall further. Weaker than average economic growth, low inflation, and an "unusually uncertain" economic outlook still make the current environment supportive of low mortgage rates, but some investors feel that these factors have been fully "priced in." These investors feel that economic growth must falter significantly for mortgage rates to drop much from here.

Until you "lock" your interest rate, it continues to float with market conditions and in this case it's floating up, up, up.  To lock your rate you must have a purchase contract on a specific property and communicate your wishes to secure today's rates.  My best advice for anyone home-buyer on the prowl for a mortgage or home-owner in the market for a refinance . . . lock in your great interest rate immediately!  That was free advice right there . . . who says nothing in life is free?  Yip, you're welcome, that advice may have saved you thousands and that's what I'm here for my friends!

Mortgage Rates on the Rise

Mortgage interest rates have been on a steady rise since November 25^th, all due to a suffering Bond Market.  Mortgage Bonds have started the New Year to the upside; however, prices still need to break out of the downtrend they have been in for the past 2 weeks.  It appears that Bonds are attempting to stabilize and come out of this downtrend.  However, don’t expect Bonds to recapture all of their losses.  With the Fed buying fewer Mortgage Bonds and wrapping the program up entirely at the end of March, any improvement in rates may be modest at best. 



Rising Mortgage Rates

Mortgage Bonds seem to have topped out on December 8^th and have drifted lower since.  As a recap, the Bond Market directly affects mortgage interest rates – when the market is higher, interest rates are

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