While we have said before, that Mortgage Interest Rates are expected to rise in the not to distant future, Rates actually dropped slightly in response to economic news. Typically, when the Stock Market drops, money moves out of Stocks and into the Bond Market. As the Bond market rises, Mortgage Rates tend to go lower. This is helpful information to determine the best time to lock your rate. It is important to have your Credit and Income approved first. In that way, you are ready to lock your rate when these rare opportunities occur.
Remember, other factors also affect both Rates and Home Prices. If you are waiting to possibly save an eighth or quarter of a percent on the rate but home prices are climbing due to supply & demand, you could end up saving on your interest rate but paying more for the home you want to buy. It is important to keep in touch with your Mortgage Professional at Valley West Mortgage. We watch all of these indicators so you don’t have to!