Mortgage rates moved to their lowest levels of the month today, beating out
That same article explains, "A prominent feature of bond markets and mortgage rates in June is that everywhere you look, rates have been contained by a range! In terms of average mortgage rates, the range was as narrow as 4.25%-4.25% (because the average rate itself didn't change... only the closing costs associated with 4.25%). In terms of 10yr Treasury yields--an interest rate benchmark that tends to move in concert with mortgage rates--the range has been 2.57-2.66% with uncanny reliability since early June. That range was broken today, but only slightly. There are two ways to approach this depending on your level of risk tolerance. First and foremost, any time rates are at the lowest levels in nearly a month, it's a compelling argument to lock. Additionally, rates haven't risen in 6 of the past 6 days and they've fallen in 7 of the past 9. In general, the more consecutive days markets move in one direction, the more likely a correction becomes, even if only temporary."
Blue Home Loans explains that the other way to look at the situation is to hope that this is a potential shift away from the range, and that perhaps rates can go even lower. Whether this will actually be the case will be clearer tomorrow; if rates fail to go back up to "range" levels it could be a sign of a new trend. In any case, those who are considering whether to lock or float need to assess their risk tolerance and if they will still be okay if rates do go back up again. As always, those who are very near to closing on their loans should consider locking in the current rates, as even a temporary correction higher could mean losing out on a better mortgage interest rate for their loan.
Those who choose to float should do so carefully, and stay in contact with their loan officer who hopefully keeps close watch over the pulse of the finance markets that affect interest rates. Those who have not yet started their loan process and are worried about higher rates later in the year can lock in on application with a lender that allows for renegotiation. This will allow them to keep current low mortgage rates in reserve, while also leaving their options open if rates drop lower before they close on their loan.
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Read the full story at http://www.prweb.com/releases/blue-home-loans/lowest-home-loan-rates/prweb11976737.htm
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