Today the stock market and the gold market made a bit of a recovery from yesterdays beating. This has put pressure on mortgage backed securities (MBS) causing the recent rate drop to stall out. Though MBS have support below them at the 200 day moving average, they appear to have been over bought in the last couple of weeks and could be due for a bit of a correction.

The main thing to know about home loan rates right now is that they are artificially being held this low and when the Fed starts to see signs of inflation, they will have no choice but to tapper off their buying policy of MBS. This will will cause rates to jump at least a percentage point very quickly. Now we do not know when that day is goiong to happen, but we know that it is going to happen. I would not wait for lower rates than what you are seeing now, but instead take advantage of what is currently available before it is gone.

Please watch the attached video to see where home loan rates are at today.If you would like to talk about your specific scenario or needs, please do not hesitate to call or email me directly.

This statement of current rates is not an offer to enter into an agreement for a loan at a specified interest rate, number of points or both. Current interest rates and discount points are subject to change at any time without notice to you. Stated rate examples were calculated using a $300,000 loan amount, 80% LTV and 720 Min Fico at the stated term lengths. Licensed by the Dept. of Corporations under the CA Res. Mtg. Lending Act – 431-0421; Rates and charges in the advertisement do not apply to all loans made by the financial institution.

Rob McNelis
Loan Officer - NMLS# 830519
Direct: 619.279.6162
robm@summitmortgage.com
robmcnelis.com
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