Good afternoon,
Rates have taken a slight rise over the past few days and have settled so far. The main news that has been causing a rise in rates is due to more and more mortgage bonds being auctioned off by the Federal Reserve. This mornings announcement from the Federal reserve is an additional $75 Billion Dollars worth of bonds will be put up for auction next week. Once again it comes down to supply and demand…many are speculating that with such a large amount of Bonds up for sale, that the value will decline. If this holds true, then we can see rates rise once again.
That’s it for now, short and sweet.
Have a great week!
-Matt
30 year fixed: 5.375%
15 year fixed: 4.875%
Seriously? Where does the summer go?!? I’m trying to make the most of it by getting myself to my first Twin’s game of the year. Apparently we saw history with Mark Buehrle shutting down the Twins first 18 at bats to make it 45 in a row after his perfect game…not fun to watch as a fan. At least the Twins pulled it out.
Ok, on to the market in case you don’t care about baseball or are just a wee bit curious. Rates have risen a bit since last week and will most likely hold here or higher for a bit with the treasury auctions that will be happening this week. The Fed has $110 Billion worth of treasury bonds to sell off. Supply and Demand being what it is, this is a lot of supply that can and will affect overall value of bonds for the time being.
Rates are still in a great range historically speaking.
**One final important note, the $8000 first time homebuyer tax credit is set to expire on November 30th. For buyers to take advantage, their mortgage needs to close on or before that date. With new legislation being passed, it will become increasingly harder to close a loan in 30 days or less, let buyers know this before they lose out**
Have a great week!
-Matt
30 year fixed: 5.25% 15 year fixed: 4.75%
Good morning,
Inflationary pressures have brought interest rates back up to where they were last Wednesday…they did lower down to 5% last week from Thursday through Monday.
This brings up an important point that I focus on with my clients as closing comes nearer; Rate Renegotiation. When you, or a client, lock in the interest rate on a loan, many are under the assumption that this is the final rate you can receive no matter what. This isn’t always the case.
If the market rates have improved significantly (say .25% or more) as closing draws nearer, there will be a small window of opportunity for the loan officer to renegotiate with the lender for a lower interest rate. Now, because of the rate lock previously, the new rate won’t be quite as low as if they had never locked but will still improve the overall rate.
With interest rates becoming increasingly more volatile again, I suggest that clients lock in as soon as they can knowing that they no longer run the risk of being forced to take a higher rate but still have the flexibility to lower their interest rate if the market improves. I find this takes a lot of worrying out of the loan process and suggest passing on this knowledge anytime you come across someone you know buying or refinancing their mortgage because many loan officers don’t take the time to do this for their clients until they are asked.
Rates this week are below.
-Matt
30 year fixed: 5.25% 15 year fixed: 4.75%
Mortgage Planner of 8 years, specifying in ensuring that homebuyers both understand and enjoy the mortgage process, not worrying about last minute changes and closings not happening.
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