As you may have heard mortgage rates are at all time lows, right? So the question now becomes, why are you not refinancing? With interest rates as low as they are a great opportunity is at hand for many borrowers. The funny thing is though, on June 24th, the day that the weekly interest rate survey pointed out these lows. Rates took a big jump to their highest levels in a week.
Keep in mind that interest rates on mortgages behave far more like stocks than they do like CD rates which banks can set and leave in place for months. Mortgage backed securities trade in an open market and can be impacted by political and economic news in addition to supply and demand. So rates can move like Microsoft’s stock. Could be $28 this morning and $29.50 in the afternoon.
The best advice if you are a consumer is to work with a professional lender who you know, like and trust. Figure out the best solution for you and then come up with a target rate. Remember, especially if you are considering a reduction in the term of your mortgage, the big savings comes in the tens of thousands of dollars in savings by cutting years off the loan. There are only pennies to be saved trying to guess if you can get 4.75% tomorrow instead of 4.875% today.
