Mortgage Interest Rates Continue to Drop
We made HUGE GAINS of about 0.500/fee yesterday on all programs and rate buckets! The GOOD news is those gains are HOLDING today!
I told you so. I have been saying since the post-election stock rally that raised the Dow and the other stock indexes to new highs at the expense of rates.
The belief is that the economy will skyrocket based on the Trump win. My longer term view at that time and now is that the rally will not continue, we could see a slow down within a year and mortgage rates will come back into the 3’s for a 30 year fixed.
Right now, I look pretty smart! I priced a mortgage today where I can give the customer 3.875% with no points on a 30 year fixed.
But, if you have to lock in because you are buying a home, get a rate with NO closing costs (which means you pay a higher rate in order for them to pay for the costs- think seesaw). If you do this, you can then refi with a no cost loan that won’t affect your principal balance once the rates go down.
If you want to refinance to a 30, 25 or 20, wait! 15 year, though, is still aggressive. I priced one at 3.125% with no points! No cost at about 3.5%! That’s cheap money!