Last week I wrote that interest rates had remained in an unusually narrow range since mid-January, a very unusual circumstance. It is rare for rates to stay “range bound” for too long, as eventually market pressures push them one way or the other. Investors (who “set” interest rate by determining what they are willing to pay for a security backed by mortgage pools) are a nervous lot, and they don’t like stability.
Well, one week makes a heck of a difference. On Thursday of last week rates started to break downward, and moved below the range on Friday. The next day or two were critical, to give us an indication as to whether this was a sustainable trend. So far, so good.
Rates improved again on Monday, backed up a little yesterday, and are making another run down again this morning. Have you been waiting for a sign? Here it is.
Lenders are hungry for business, too, so they’re following the market down more quickly than they typically do. I’m seeing price improvements mid-day, and the best pricing of the year.
If you’ve been thinking about refinancing, it’s a good time. If you’ve been thinking about buying a home, it’s tough out there but the lower rates do give you a little more buying power.
Call me to find out what is possible for you today.
Casey Fleming, Mortgage Advisor, C2 Financial Corporation
Author, The Loan Guide: How to Get the Best Possible Mortgage
NMLS 344375 / BRE 00889527