MORTGAGE RATE UPDATE
If you signed up for my mortgage rate update service you would have known right off the bat that it was time to lock your interest rate this morning. That’s assuming that we didn’t already lock the rate last week. There’s been too many outside factors influencing our mortgage rate market lately, namely Greece. Now how does Greece make any difference to a borrower who lives in my town, Santa Rosa, Ca., when my borrower is trying to borrower money secured by a lien against their property? Great question!! You see, when the cost to borrower money elsewhere increases, specifically when we’re talking about the bond market, that tide will rise all ships. Take a look at my post about mortgage backed securities and how they determine the cost of money you borrow. From the opening of the MBS market to the current time we have seen the cost on mortgages increase by approximately 62 basis points, yes that’s a lot. This week will see the first quarter gross domestic product release on Wednesday, and Thursday will see how personal income and spending went in May. My best guess is that the numbers won’t be good. My clients know these things going in and aren’t surprised by sudden shocks to the mortgage market, if you want the best mortgage broker in Sonoma County, call North Bay Capital today to find out what rates are doing for your loan.