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Groundhog Day

Last week, like the last three weeks, mortgage markets were bouncing off the walls all day, every day.

But, also like the 3 weeks prior, when the week ended, rates were right back where they started on Monday.  I swear, It’s just like that movie Groundhog Day.  For the 4th straight week, mortgage rates started and ended the week essentially unchanged.

Is It Good For You?

Whether or not this is good news depends on your perspective.

For active home buyers who have yet to find the “right home”, long-term flat rates like this is terrific news.  While interest rates stay even, buyer purchasing power holds flat and pre-approval letters stay valid.  Yep, rates change pre-approval letters.

For buyers already under contract or homeowners looking to refinance, the market’s pattern is a little more rough.  Although rates are holding steady week-to-week, the day-to-day action is much different.  Bond markets are volatile and rate swings of a quarter-percent in a day have been very common.  It’s enough to drive a person insane if they watch closely enough.

How good of a rate you get depends on day on which you’re shopping. This complicates the process of “locking a rate” and makes it very hard for people trying to time a market bottom.  It’s more important now than ever to work with a mortgage professional that gets it.

Specifically, What Did Those Reports Say?

Each week, I put up an economic calendar of news coming out that following week.   Here’s the what actually happened with those reports last week:

What Impacts Mortgage Rates?

If you’re looking to purchase or refinance a home, it’s important to know what moves mortgage rates.  There are normally two major things that impact the direction:

1. Economic News.  (Like the calendar above).
2. International News. (major events, pending legislation, war related news, etc).
3. Stock Market. (Money flows from equities (stocks) to bonds when it seeks shelter).

What Are Rates Based On?

It’s been mentioned before, but as a common reminder – mortgage rates are only based on one thing.Mortgage Backed Securities (MBS).  The only way you have access to these is through live bond quotes.

Looking For Mortgage Rates?

If you’re looking for specifically what mortgage rates are doing, I’d be happy to help with a custom rate quote.  Each scenario is different (there are 27 different factors a mortgage rate is determined by).  If you or someone you currently know are looking for a mortgage, I’m here to help!

Information without obligation.  That’s my policy.  If you like what you hear, my team and I would love to help you out with your mortgage!