Yesterday's mortgage rates were more or less unchanged from the previous days' quoted rates, which are still near the lows of the recent range. This is an unusual circumstance, as the original motivation to move lower came from unexpected geopolitical factors, and this would usually result in more dynamic movement for mortgage interest rates over the following days. Instead, rates have been more or less unchanged, with only very slight increases since the beginning of this week.
The same article goes on to explain, "Not only have things been stagnant in the short term, but the past few months have been exceptionally flat as well. In fact, it's not unfair to say that after bottoming out in late May, mortgage rates haven't moved much at all. Only two rates have been contenders for top-tier conforming 30yr fixed scenarios during that time: 4.125 and 4.25%. Whichever rate you were quoted yesterday is almost certainly the same rate you'd be quoted today. The only differences from one day to the next are the very slight changes in closing costs. This is a factor of mortgage lenders typically offering rates in .125% increments. There is seldom enough movement to move rates by an entire .125%. The costs associated with those rates are like 'fine-tuning' adjustments that allow lenders to keep pace with the always-moving bond markets that serve as the basis for rate sheet movement."
Blue Home Loans explains that the recent phenomenon of rates stuck near the bottom of the range for days on end can increase the likelihood of rates bouncing higher soon. Of course, there is also the chance that some influence could push rates slightly lower, or just keep them where they are at, at the bottom of the range. However, the risk is much greater that rates will move up. Because of this, those who are trying to decide whether to lock or float their loans should carefully consider their own tolerance for risk, and also how much time they have left in their lock period.
Those with shorter lock periods should definitely think about locking in, while those with more time have a little more leeway, but should also consider the risk vs. reward of floating. For those who are just starting with their loan applications, it is also important to find the right loan program. This will save borrowers the most amount of money on their home loans whether they lock in on application or decide to do so later.
Blue Home Loans can help
For more information on how Blue Home Loans can help
Read the full story at http://www.prweb.com/releases/blue-home-loans/mortgage-rates-frozen/prweb12091535.htm
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