What’s the rate on a 30 year fixed these days? We all here that question in the industry quite often. But right now the mortgage backed securities market and in turn the mortgage rate market has been pretty volatile.
Every time we see a slight improvement in rates people are shouting from the skies that rates have improved again. Without the broader picture and some context however, this type of spouting off misleads the public into thinking rates are much lower than they actually are. For instance, we’ve seen rates decrease in cost by about 25 basis points only to give that back the following day and then some. This happens all the time and has been happening quite a bit lately.
Here’s the twist though. People only shout from the rooftops when rates improve. They ignore when they get worse. When this happens a couple of times a week up and down and the talking heads and mortgage marketers tell you about rates improving several times a week at about 25 basis points or .25% in cost. The public assumes that those improvements are cumulative. You might think rates are a full point lower than where they were just a couple of weeks ago based on this type of misinformation. Read the full weekly rate insider for yourself.
The truth of the matter is that rates are higher than they were a week or so ago. You have much more to risk than to gain by not locking in a great rate today. I tell my clients not to be greedy. The bond market was at the top of the trading range today and I advised my clients to act accordingly. Some individuals have a much greater risk threshold and they like the idea of gambling for another 10, 15, 20 basis point improvement which is literally only $100, $150, or $200 per $100,000 loan amount in spite of risking loosing that same amount and much more. My philosophy is that this is your mortgage and your life. This isn’t simply risking your winnings on the craps table after you started w/just $50. This is not something to be taken lightly. If it were my personal loan and I were given the choice in this market I would go ahead and lock in and sleep easy. The choice is your, I just want you to be fully informed so that you can make a great decision. If you’re not getting this type of advice from your loan officer don’t hesitate to give me a call at 916-502-1656 and I’ll help you plan your locking strategy, provide a free Mortgage Review, mortgage rate quote, or pre-approval to purchase a home. You can also inquire online at http://www.sacramentohomeloanspecialist.com/forms/askAnExpert.html
What Happened With Mortgage Rates This Week? Insider"s Report!
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