Yesterday rates improved slightly, but this was erased today when rates went right back up to around the same levels of middle of last week after a stronger than expected inflation data report.
The same article continues, "For most of 2014, and especially since May, mortgage rates have been in a very narrow range marked by top-tier rates of 4.125%-4.25%. As we frequently discuss, most days don't bring enough market movement for rates themselves to move a full eighth of a point. Within those eighth-point chunks however, closing costs can change every day, and sometimes several times a day."
Blue Home Loans explains that to get back to the lower end of this narrow range (4.125%) there would need to be a fairly big positive move in bond markets, and at this point it is not clear where such motivation would come from. There could be some good news after tomorrow's FOMC meeting, but it would not be wise to count on that. Instead, borrowers should carefully consider their risk tolerance, and lock in if today's rates seem reasonable to them and they would rather not risk having to settle for a higher rate. This is especially prudent advice for those who are near to closing on their loans, but even those who have not started their loan process yet can benefit from this advice by locking in on application with a lender that allows for renegotiation. This will allow them to keep current low rates in reserve while keeping their options open in case rates dip lower before their loan closes.
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Read the full story at http://www.prweb.com/releases/blue-home-loans/mortgage-interest-rates/prweb11954061.htm
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