I am sure many people want to know where current mortgage rates are at all times, but especially after the recent stock market debacle where the DOW was down almost 1,000 points at one point in the day. Of course, the story line we are hearing is that the mistaken input of a fat fingered trader at Citi is solely responsible for the error. That story is meant for an entire other blog post, but if anyone believes there are not checks and balances in place to protect from those sorts of simple mistakes, then I have a bridge for sale.
On to rates….
As the stock market has recently been sliding, what would normally happen is that people put more money in bonds and less in stocks. And that demand for bonds helps drop interest rates in general, but not necessarily mortgage rates.
Although the 10 Year T-bond went from 3.88% to 3.43% in just a few days, mortgage rates did not correspondingly fall .375% or .5%.
Interest rates for mortgages over the last few days are down only 1/8%, which is nice, but people need to realize that mortgage rates respond to numerous factors and do not move in lock-step with a certain barometer (such as the 10 Year T-bond, or the 30 Year T-bond, etc).
The future of interest rates is unclear. There is inflationary pressure on rates due to the deficit and the continued insane spending of the U.S. Government, but the weak economy seems to be a counterbalance, for now, and allows rates to stay fairly flat.
Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.
