Good Morning,
Interest rates have remained steady over the past week but we may see some short term drama unfold tomorrow. Spain is auctioning off bonds in an attempt to resuscitate their struggling economy by bring some much needed cash into the budget. If they sell well, we will see a positive market reaction for the stock market, which will most likely cause the inverse effect on the mortgage market and raise rates. Even though this would be a quick and dramatic stumble for our low interest rates, the long term future of Europe’s economy still looks fairly grim and we should see continued support of these rates on the mortgage backed security side of the market.
So, Matt, what in the heck does this have to do with a toddler…are you sure you don’t just want to talk about your daughter again? Since I tend to draw analogies from what I know, I guess it’s a little of me thinking a lot about my daughter at work. But here’s how I’m seeing this current market from the interest rate standpoint:
The low interest rates are the toddler, they find a consistent level of speed as they run through an open field in the market. It’s only a matter of time before a toe digs in and they stumble and fall. Even though they fall, it’s a momentary blip as they pick themselves back up and go right back to running the same way they had before. Currently, interest rates are doing the same thing, they look to remain at a constant level, despite a few blips for the foreseeable future. Eventually we will see an uphill rise, but right now we’re just running through the field.
Have a great week!
Rates: 30 year fixed at 3.875% (APR 4.015) and the 15 year at 3.00% (APR 3.244), FHA: 3.625% (APR 4.388): As always rates change with individual credit scenarios and programs, APRs are estimated based off of a $250,000 purchase price with 20% down and a 740 credit score, if you want an exact quote, call. These are not quotes, merely a baseline measure to gauge how rates change from week to week.
Matt
Matt Royer
Mortgage Consultant, CMC | Homes Mortgage
NMLS# 366970
612-232-7646 c
651-770-0637 o
651-294-1001 f
www.MattRoyer.com
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