If you look at mortgage rates today and compare them to January's numbers, not much has changed:
But on a day-to-day basis, the market is not as smooth as the comparison would have you believe. Mortgage rates are more like The Vortex -- two double-loops, a corkscrew and a batwing.
Enough to make you vomit.
If you've been shopping for a mortgage lately, you know what I mean (alternate link) and unless you're getting my Twitter updates piped to your mobile, you're left looking for clues anywhere you can find them.
For example, although mortgage rates were the mirror-opposite of the stock market Thursday and Friday, there's no long-term relationship between the two upon which we can draw. We can't say "when stocks are up, rates are down", or vice versa, because there are many days that the two move in tandem.
The biggest clue we have about mortgage rates is that they respond to expectations about the economy. Because of that, we should expect the loop-de-loops to continue until 1 of 3 things become clear:
Unfortunately, recognizing recession and inflation is a lot easier in hindsight; the same way we look back at a bubble. While you're in it, it's too hard to tell what's happening.
So much for the experts.
Mortgage rates are getting whipped the ongoing Recession vs Inflation debate, so if you're not the type to gamble with your household budget, consider locking your rate right away. What you're really doing is locking in a worst-case mortgage rate scenario.
Heck, even if you do like to gamble, think about locking in. Even though mortgage rates may fall, they may not fall during the time period that you need them to.
In other words, rates may not fall until after your closing.
Instead of waiting for the big drop, take some chips off the table by locking in now. If rates fall after your closing, you can always remortgage down to the lower rate. And by then, maybe we'll know if this was a recession or just a blip on the radar.
Barry L. Systems Analyst
The Mortgage Reports is an excellent resource. I depend on the Mortgage Reports for the most up-to-date information regarding shifts in government policy and mortgage rate information in general.
Lorraine L. Medical Compliance
Thank you for The Mortgage Reports. I find your reports to be both helpful and informative.
The Mortgage Reports is invaluable. It's our primary source for information on housing finance.
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