Yesterday (October 15th, 2014) was a great day for mortgage interest rates… if you were able to catch a low rate and get it locked in between 9am and about 1:30pm CST.
Here’s a chart of the 30 yr 3.5% bond market yesterday.
Here’s how the same bond market opened up so far this morning:
Yesterday’s mid-day social media updates were about the closest you could have got to being on top of the rates instead of reading it in the headlines this morning.
Typically rates are in a “trending mode” either up or down. Here’s a chart of a 3 month history of the same bond market (below). The little “hash marks” on any given day is the activity of the sale of bonds. Generally…as bond prices go up, mortgage interest rates trend downward and vice-versa. This chart shows that the last 3+ weeks we’ve been on a good upwards bond trend (rates have been trending down) and yesterday you see the SPIKE that is depicted in more detail in the first chart (above). The BLUE line is the “10 day Moving Average” and the dark orange line is the “30 day Moving Average”. The green lines are what we call “levels of support” that we watch.
BOTTOM LINE FOR CONSUMERS:
- Reach out to a good “mortgage guy” that you trust.
- Have a plan put in place to know when/if rates do drop to a point that it really makes sense to pull the trigger on a refinance.
- Know the rate and terms to make that happen and give permission UP FRONT so that when a window of opportunity comes in… your “mortgage guy” can get you locked in and THEN get the file rolling and closed for you.
- If you’re in a purchase transaction (with a set deadline) confirm if your “mortgage guy” is watching a tool like this to know if he’s on top of the market and has a clue as to giving good FLOAT or LOCK advice during your transaction.