First Time Home Buyers
By all normal rules, mortgage rates should have increased in the past week, yet conventional loans, FHA and VA loans all became less expensive.
This is four weeks in a row where rates have improved for all of the most popular loans for first time home buyers.
We’re now at the lowest rates in 45 days, but probably shouldn’t be. We have seen strong corporate earnings, continued stability in housing, and the general economic trends are pointing in the right direction.
Rates went down last week for one reason: Everywhere else in the globe seems like a really risky investment so money flooded into the relative safety of U.S. mortgage bonds.
For this week, we’re seeing that the same thing could repeat itself. There is almost no economic data due out except for the Retail Sales report. That means that most of the news influencing mortgage rates for first time home buyer programs will occur when overseas markets are open: China, Greece, Spain, Ireland, etc.
Mortgage rate predictions for this week? Watch the overseas news. If you’re under contract and therefore able to lock, it might make sense to do it soon. Rates have been on such a good run that they’re back to where they were before…when they jumped .5% overnight.
Or, if you’re not sure, just give me us a call or click the chat button and we’ll email you when the market changes.
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