From Ted Gosnell at First Home Mortgage. To see the rates, click on the link at the bottom of the page.
“While the stock market had a rough week, mortgage markets were relatively quiet, with no economic surprises, there was little change in mortgage rates.
This week’s economic news showed little or no indication of inflationary factors. Since low inflation is always good news for mortgage rates we can be hopeful that rates will remain low a little longer. The Fed’s announcement of their intention to reduce purchases of mortgage backed securities (MBS) once inflation begins to rise could be doubly problematic should inflationary indicators appear. With the Fed’s withdrawal of financial backing for mortgage and Treasury securities and inflation’s negative affect on financial markets all rates will be pushed upward and mortgage rates will once again rise to more natural and higher levels. I haven’t changed my opinion that higher interest rates may also bring higher mortgage availability for our more challenging mortgage applicants? So we’ll have to wait and see and hope for the best?
All that said, low mortgage rates will not be here forever and the time for credit worthy buyers to buy more house for the lowest payments imaginable, may soon end. So as the saying goes…”Make hay while the sun shines.” And remember, speaking of sunshine, the financial markets are just as unpredictable as sunshine and the weather, so don’t take these 3.25% mortgage rates for granted.”