We are very fortunate in the markets of Wenatchee, Leavenworth and Chelan in Eastern Washington. We are able to take advantage of the low mortgage rates driven by the cooling national economy, all without actually having to participate in the cooling economy.  Last week was crazy, and it looks like mortgage rates are poised for another wild ride this week.

Last week they plunged briefly on Tuesday to some recent record lows, then they rose late that afternoon and later in the week were back up to almost the December levels.   Mortgage rates respond to economic news (see below if you want more detail *), and this week is packed with more critical economic reports than I have ever seen in one week.  Since I am not a fortune-teller, I can't tell you what all these reports will say, but odds are some will be positive and some negative, and the result will likely  be extreme turbulence.

So here is my advice: Last week, the extreme low rates were only available for about 30 minutes.  So if you have a transaction ready to lock, I would tell your loan officer what rate you want, and tell them to lock for you if we hit that rate.   If it would benefit you to refinance your own mortgage in the low 5% range, I would suggest getting your application in with enough info that your loan officer can lock for you if rates hit your magic number. 

 Last Tuesday I called some people and quoted them the great low rates, but by the time we got the info and ran the numbers, the rate was gone; but now we are ready to pull the trigger at a moments notice.   For your clients who don't like risk, if they like the monthly payment they can get today, they should probably lock ahead of the roller coaster ride.  

      *More info if you want it:   Remember, Mortgages rates are one of those strange creatures which are not driven by their own supply and demand; more people wanting mortgages does not drive the rates up. Instead, they are driven by Wall Street Investors' view of the stock market. If the investors are concerned that stocks won't provide a good return, they buy securities with a guaranteed return, such as bonds or Mortgage Backed Securities (MBS). These are driven by supply and demand, so when more investors buy them, it drives the price up and the interest rate down