Over the past few weeks, we have all seen the market go up and down like a roller coaster from the "deep south". No stock was safe and no Real Estate or Mortgage Company was left unturned by what has been going on.
Now, we get the big news yesterday with regard to the Fed Funds rate cut. With very few factual reports, investors showed a massive boost of confidence and increased the Dow by .55% by the day's end. I have heard reports on both sides of the spectrum that rates on long-term mortgages have gone up since yesterday, and also that rates have gone down due to yesterday's Fed cut. I personally feel as though the mortgage rates are going to be effected by this, but we won't see a dramatic impact until another rate cut is seen - probably next meeting of the Fed depending on what happens over the next month.
The 10-year bond rose today which indicates that rates will probably increase tomorrow slightly especially since the overall market increased.
There were a couple interesting articles published today:
I would suggest for anyone who is closing a loan within 7 days to wait out tomorrow. If the market increases again, and the 10-year increases as well, lock your rate by the end of the business day. However, if the market does anything different than that, float it. If you are closing anywhere after the 7 day period, float your rate because there are too many aspects that could change the playing field over the next few days.
*Please keep in mind that this advice is solely my professional opinion, and all thoughts and comments are welcome!
Comments(5)