Even through all of the doom and gloom predictions of the first and second quarters, interest rates continue to hover at all-time lows. Take a look at the bond market over the past 30-days:
Not only have rates improved since May 24, they continue to break through ceilings of resistance; which, in turn, become new floors of support. What is driving the market?
In reality, it's bad news. Problems in Europe, worse than expected employment numbers, and losses in the stock market are driving investors to the relatively safe haven of mortgage bonds. The question is, will this continue? And the definitive answer is, no.
What goes up, comes down, and mortgage bonds are no different. When mortgage bonds do drop, and they will, it could be a drastic change; not unlike what we experience in the fall of 2008, when bonds dropped nearly 200 bps over the course of only a few days.
So whether you're looking to buy or refinance, this is the time. If you're in the market to refinance, even if you have a nice low rate like 5.75%, it makes good financial sense to at least take a look at what you can save. For a quick look at the savings available, take a few minutes and watch this short video.
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