So I went on vacation last week and felt pretty good about it. Rates were at 4.75% and we were talking with plenty of people about the market, refinancing, reducing the terms of their loans and saving money in the long run. Additionally, we were having a great closing month as well and were happily moving loans to the closing table at a good pace.
I walked back into the office on Wednesday after a vacation that included lots of family time and no email, to a surprise. Rates had risen over .50%. Then on top of that rates went up again on Thursday. All of a sudden rates are at 5.5% in the blink of an eye!
Will they get better? Likely so. Rates never really move up or down in a straight line. However, they are unlikely to get near the bottom very quickly. The market is very worried about all of the debt created by the stimulus plan and financial rescues. This means that though the selloff is an overreaction, the change in sentiment is for rates to start rising.
If you have been considering refinancing, get your paperwork in. Pick your target rate and be ready for an interesting ride!
