Last Week's Mortgage Rates Recap
Last week we ended the week with significantly better mortgage rates than we started - depending on the lender it was anywhere from .125% to .250% improvement to mortgage rate on the average loan. After so many weeks of rates being in a tight range with little improvement, what drove the rally? The short answer is the drama in North Korea and their threats of attacking the US and South Korea. It was exacerbated as well on Friday with a decline in employment data, which was a big market mover.
This Week's Mortgage Rates Forecast
Risks Favor: LOCKING
With the rocketing performance in the MBS (Mortgage Backed Securities) market, and the resulting improvement to rates, how can we possibly suggest to lock? Simple, it's because of those exact reasons. We have seen a sudden improvement in rates driven by economic data that was a surprise, as well as global news from Korea. We now find the market in a situation that is poised for a reversal. Just like a good gambler knows when to get up from the table, a smart consumer knows when it is a good time to take the deal that is on the table, and it appears that now is that time.
This week for any consumers who are less than 30 days from closing, you can float very cautiously because you have time to act and recover if we see a sudden reversal. However anyone that is closing within the next couple of weeks should really consider locking, because the chance of seeing this rate improvement slip away is higher than the chances of seeing continued improvement.
BOTTOM LINE: If you aren't closing for awhile, let's see what the market does and maybe we can see even a little bit more of an improvement. However, if you are closing within the next couple of weeks, or you simply like the rates you're looking at now, lock in these low rates and don't look back.
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