I can’t believe nearly a month has gone by since my last post! What a whirlwind…
I last wrote about how low rates were, and have been busy getting people locked in and closed during this time period. For a while, rates maintained their low levels, and then dipped lower a couple of times, but have been on a slight upward trend this week.
The main factor in low rates has been the financial turmoil in Europe. As I’ve mentioned in the past, instability in the economy and weak economic reports translate to decreasing interest rates. This occurs on a very time-sensitive level, which explains why an interest rate may be there one hour, but not the next (same as the volatility in the stock market). Ultimately, negative news in the economy (both domestic and international) generally bodes well for rates. When there is weakness or instability, investors take their money out of stocks and put them into bonds. Since mortgage rates are determined by how mortgage bonds are trading, when bonds are trading positively, rates go down.
The trend is slightly up, but they’re still amazing, so let me know if you have a scenario you would like to run by me. And in the meantime, I won’t let a month go by before posting! 🙂
