So lately there has been a tug of war on the bond market. We have sat above support levels for quite some time. With that you have seen lower interest rates. The last few weeks have been a different story for mortgage rates. Why is that?
In short, we have seen a sell off of bonds. And earlier this week we saw the bond crash through a key support level. This may be an indicator of what I said at the end of last year. That rates will rise slowly throughout the year, and when we hit peak buying season, is when they will start going up. So here we are. It is May, and mortgage rates are at their highest levels all year.
Mind you that we are still seeing ridiculous mortgage rates overall. I bought my current house 7 years, and got a 6% fixed, and was happy. So yes, on a micro level these rates seem high. But talk to those who have had mortgages with rates at 18% and they will tell you, not to complain.
At the end of the day, you need the right mortgage professional. Whether you are buying or thinking of refinancing your home, they will give you sound advice. That advice will be based on market trends and supported by data. You will never time the market to hit mortgage rates at their lowest point. But during your contract or time of refinancing, you should be able to come darn close. Its kind of like when you go to order a bottle of wine with dinner. You surely want that person to be able to pair the wine with your dish. It can make all the difference in the world. Happy house shopping!