Mortgage Rates in Denver CO - Market Update by RJ Baxter
Mortgage Rates continue to fall on global economic worries!
What the heck is going on? We are already at near 50-year lows on Mortgage Rates and things are getting better today. There are several main drivers behind what is happening right now.
#1: Employment (or lack thereof):
Nonfarm Payrolls (left) were released on Friday and were pleasantly up by over 400,000 jobs created in May. However, a deeper look at the numbers reveals that over 90% of those jobs were due to government hiring for the census. These workers will be laid off this summer once the census is done. Unemployment dropped by .2% to 9.7%, but this was not enough to calm the markets. Mortgage Rates like negative news, and this was a biggie as the markets were hoping for stronger numbers.
#2: Global economic worries
Hungary became the latest country to come to the surface with economic concerns as they announced they may be facing a similar fate to Greece. How many more countries will follow? Traders were concerned about the global economy already, and this announcement didn't exactly help. This added to the buying pressure on bonds, and Mortgage Rates benefited as a result.
#3: Housing
The effects of the home buyer tax credit will be drying up June 30th. What will happen after that? Well, we got a snapshot into the potential future of home sales as it was announced that applications for mortgage financing on home purchases was at a 13-month low last month. And this is with Mortgage Rates at 50-year lows below 5% on a 30 year fixed!
What does all of this translate to? Mortgage Rates are at all-time lows right now, so my opinion is that it is time to lock something in. It is a far worse scenario to not secure your rate and have rates go up than to lock and have Mortgage Rates fall. Remember, if rates fall, lenders will renegotiate your rate down!
Comments(0)