23 July 2010 –Rates began the week coming off the lowest mortgage rates we have seen to date, so things could not have gotten much better. Economic news was generally favorable with good earnings data for many companies across several industries, which helped equities markets. This had an adverse effect on mortgage rates to the frustration of any fence-sitters out there who were hoping for that elusive sub-4% 30-year fixed rate mortgage. Luckily the was a counter-balance in the form of comments by Fed Chairman Bernanke that there were no plans for further stimulus and that inflation could be an issue at some point in the future. This threw a bit of water on Wall Street’s scorching hot gains and reduced any rate increases to a couple basis points.
LOCK OR FLOAT
For those floating a mortgage rate in a current transaction or considering applying for a loan, vigilance and realistic expectations are key. Although we will see rates bounce back and forth around a low mean, I would recommend anyone waiting to act. When rates do finally go up for good, it will likely happen fairly rapidly. It is my firm belief that regret over getting 0.125% above the actual bottom is better than regret over 0.5% above the actual bottom.Email This Post To a Friend.