Some of you may have heard about the stock market dropping dramatically this morning, others may have had no clue. For a Mortgage Broker, we watch the market trends throughout the day. Especially when the stock market and the bond market start moving in the most dramatic fashion I can remember seeing in the past few years.
If the trading ends similar to this morning, we are poised to see interest rates drop even lower tomorrow. Right now, everything in the market is bouncing up and down so dramatically that major Lenders are keeping rates a little higher than I’d have expected.
So, what is causing this chaos in the market. I’m reading commentary offering speculation just short of the zombie apocalypse. The most reasonable article I’ve come across is HERE. Basically, there is no single catastrophic event causing this. Moreover it’s simply increasing worries and fears about the market as a whole coupled with high reactions to what everyone else is doing.
Let’s make one thing clear: Humans are hard wired to base financial decisions on emotion, the professionals are no different. Today is a very simple example of that. Let’s see if the drama continues or corrects itself. Tomorrow will be much more telling as to what direction the markets will trend. Just like a four year old without a nap, we need to give this a little time to calm down and see what we’re working with.
Have a great week!
Rates: 30 year fixed at 4.00% (APR 4.079) and the 15 year at 3.125% (APR 3.223), FHA: 3.375% (APR 5.468): As always rates change with individual credit scenarios and programs, APRs are estimated based off of a $250,000 purchase price with 20% down and a 740 credit score, if you want an exact quote, call. These are not quotes, merely a baseline measure to gauge how rates change from week to week.
Mortgage Consultant, CMC | Homes Mortgage
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