Mortgage Rates are Creeping Higher
Home sales are reportedly strong; political headlines indicate an uncertain future. The result? Interest rates are rising. The shift in the bond market was swift. That kind of change is usually based on weak economic data or politics clearly implicating economic negativity. Turnarounds based on less concrete indicators may mean traders are willing to drive rates even higher until there is a clear cut reason to rethink their strategy.
What it Means to Homebuyers:
If you are in the process of getting a mortgage loan, locking the rate in early in the process might be a good idea. If you are looking at homes you are considering buying, you obviously can’t lock until you find the home, but you may want to allow for a slightly higher interest rate than you had planned on previously.
2019 has offered the best mortgage rates since 2011, so even when the rates creep up slightly, interest is still at a historically low level by comparison. The recent corrections we’ve seen are not really a surprise to those who follow markets.
Federal policy and US/China trade war are big factors in the direction mortgage interest rates travel. Movement on either front could cause explosive market reactions that move rates.
The Federal Reserve and the bond market watch economic data closely, not just in US, but in EU and other countries, as well as the trade war fallout on both sides. Stronger trade relations and market data would be reflected in higher rates, just as weakening trade relations and data would lead to new lows in interest rates.
Whether buying a new home is a smart decision is not just about the lowest interest rate, but whether the price makes sense for you and your family. Most importantly, buying a home is about whether it meets the needs of your and your family, in a way that is affordable to you. If you don’t have a mortgage loan officer, we can help. Come to PurchaseOurNewHome.com to find a loam officer near you who can walk you through the entire home buying process. Got questions? At purchaseOurNewHome.com we love helping you get answers to your mortgage questions.