Clients are asking where mortgage rates are headed
Well, that’s the million dollar question isn’t it? The mortgage bond market worsened by over 160 basis points, that’s a huge loss and it will take a lot to recover. What we typically see when rates shoot up like they did is the market calming down over the next week and mortgage rates will correct a little. Usually it doesn’t come back to where it was unless some new news comes out causing a new swing. Who knows, we have some economic data coming out later in the week and that may cause things to change course, but the word out there lately is that the job market is doing well and the Fed will raise their rate. The Fed has always said that the determination is not based solely on the employment numbers so I don’t know if that will be the case. I don’t believe that the employment situation is improved either, if you look at the overall workforce participation rate it currently sits at over 40 year lows, less people are working than there used to be.
In summary, its always best to work with a mortgage broker who has pricing available from a number of different lenders so that they can go with the best priced that day. Also, if you’re located in Sonoma County we’re a short walk away, located in downtown Santa Rosa. If you’re looking for conventional, FHA, VA, or Reverse Mortgage Product, we can help.