What has happened with Mortgage Rates? Will rates improve?
What has happened with Mortgage Rates? Will rates improve?
Nov 4th was the turning point for MBS (Mortgage Backed Securities) since then bonds have dropped equaling higher interest rates.
Several factors have contributed: The FED buying Treasuries, Investors pulling from bonds to invest in Wall Street and Equities. In addition rosy economic reports lately have all contributed to higher interest rates.
Will the market recover? Normally after a significant drop we see a 50% correction upward, when and if that occurs will depend on investor/market sentiment and economic reports.
Normally good economic reports will send investors to seek profit elsewhere vs the safety of bonds. Bad economic news normally has investors running to the safety of bonds.
We are in uncharted waters so caution is in order. Lock purchases to prevent interest rates rising (being unable to qualify) due to market deterioration and or fluctuations. Choppy trading will continue! Best advice is lock on any rally as tomorrow or ten minutes later could equal higher rates or a higher cost to obtain the target interest rate.
Have a great weekend!
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