It’s important to recognize that advice is extremely valuable when looking for a mortgage. The right advice can literally save you thousands of dollars, while the wrong advice can cost you the same.
I’m talking on this subject because too often when we’re asking the wrong questions when shopping around.
The first thing you’ve got to have your antenna up on is economic news if you want to have any idea what direction rates are moving.
Here’s this week’s economic calendar:
Photo Courtesy of Mortgage Market Guide.
So, what does this mean? In short – It’s a pretty big news week.
Tuesday will be big with retail sales. It always seems to move the stock market. If stocks rally, often mortgage backed securities feel some pain because money flows out of bonds and into stocks. Wednesday’s core consumer price index figures will help give us a gage on how inflation’s doing. My prediction is it will come in hot.. but, other estimates have it staying unchanged. Since inflation is the arch enemy to mortgage bonds, if it comes in hot – plan on rates increasing.
Here’s the key – it only takes one report or piece of news to move the entire market. If traders are pulling money out of stocks and piling it into bonds, rates can change very quickly. My advice is get advice from someone who gets it. If you want to stay updated as these reports come out, follow me on Twitter.
If you’re working with or talking with a mortgage professional that doesn’t know this weeks news, find someone that does. It’s extremely important and could save you thousands of dollars over the life of your loan!
Stay tuned. I love this stuff!
