There is a serious disconnect between the public perception of current mortgage rates, and the actual mortgage rates available today. The public is in general under the impression that rates, which rose sharply following last year's Presidential election, are still high. Too high for refinancing.
That's no longer the case.Click to see today's rates (Sep 23rd, 2017)
Despite the recent drop in mortgage rates, home loan applications increased only two percent, according to the Mortgage Bankers Association (MBA). There are a few reasons for this:
The fact that applications have not spiked significantly can be exploited.
Source: Mortgage News Daily
Perhaps the best candidates for refinance are those who purchased houses after the election, when interest rates were considerably higher. These folks have a few advantages that not everyone else can grab.
If you had to take a rate that you didn't particularly like, to get the home that you did like, it might be smart to get a few quotes and see how much better you can do.
Another consideration is that in the past, when every rate drop triggered a refinance boom, lenders did not lower rates as much as they could have. They didn't need to, because they had more business than they could handle.
And lenders could afford to be picky about borrowers, and stingy with approvals.
Today, they have to compete a little more aggressively for business. That might be good for you.
While last week's mortgage rates plunged as tensions escalated between the US and North Korea, that crisis seems to have abated. But there always seems to be another one around the corner.
This week, terrorist attacks in Barcelona spooked already stressed investors worldwide, and as money moves into the safe haven of US Treasuries, interest rates here are falling again. The yield for ten-year Treasuries just hit 2.20 percent, a line that has not been crossed in months.
And Trump tweets continue to destabilise the market. As he announced his decision to disband his business councils (many CEOs had already resigned before this decision), large investors immediately moved their funds out of stocks and into bonds.
Indications all point to falling mortgage rates. All three stock indexes are significantly down, oil is down, Treasury yields are down, gold is up, and CNNMoney's Fear & Greed Index, which measures investor sentiment, has plunged to 21, a level in the"Extreme Fear" range.
Markets today are extremely volatile and unstable, and that provides opportunity for those who are ready to act. Even if mortgage rates have not fallen into your strike zone, you should prepare to jump on them when they do.
Being in the right place at the right time is half of being 'lucky" in investing and financing. Your "luck" is in your hands right now.
Today's mortgage rates are a moving target, changing frequently, but trending lower. If you have an interest rate you'd like to improve on, now's the time to contact a few lenders and see what's available to you.Click to see today's rates (Sep 23rd, 2017)
The information contained on The Mortgage Reports website is for informational purposes only and is not an advertisement for products offered by Full Beaker. The views and opinions expressed herein are those of the author and do not reflect the policy or position of Full Beaker, its officers, parent, or affiliates.
Deborah C. Television Crewer
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The Mortgage Reports has been an invaluable resource to me -- it helped me to pick the sweet spot to refinance. Thanks!
2017 Conforming, FHA, & VA Loan Limits
Mortgage loan limits for every U.S. county, as published by Fannie Mae & Freddie Mac, the Federal Housing Administration (FHA), and the Department of Veterans Affairs (VA)