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Mortgage rate news: 4.375% 30-year fixed mortgage rates advertised online, time to lock a rate?
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Will you lock a rate under 5%?
Well folks if you look at your refinance or purchase loan like a game of blackjack you were up, you were down, and now you're up again.
Human psychology makes a man float his mortgage rate though every expert in the world says to lock at 4.875%. Your loan officer told you to lock. Everything you read on line told you to lock. You knew better, you let the rate float and watched it go up from 4.875% to 5.7%. Nice move hot shot. In my eight years doing mortgages I have NEVER met a customer who thought mortgage rates were going up. Not once. It's unbelievable.
So in the past few weeks you've dusted the first bottle of Jack Daniels you've purchased in a decade. You sobered up and searched mortgage rates on line and saw the wonderful news that lenders are offering 30 year fixed rates under 5% once again. Now you can screw this up again. Let the rate float! I don't need to ask you because I already know. You think mortgage rates are going down.
The best 10 year treasury bond auction in 14 years occurred Tuesday driving the 10 year treasury yield down near 3%. Mortgage rates for 30 year fixed conforming mortgages are directly tied to the 10 year treasury yield. As it plummeted so did mortgage rates. It's a great second chance for anyone who may have missed the opportunity to refinance at a record low rate in April and May. It's also a once in a lifetime chance for a first time home buyer to secure a great 30 year fixed loan on a home that's now much more affordable.
There's a chance that as the sky stops falling rates will go back up. That could happen very soon as all it takes is one bit of good news to get a stock market rally going.
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