Interest Rates Breakout for the BETTER!!!

Sometimes it feels great to be wrong. This my friends is one of those days. Yesterdays post was an analysis as to why interest rates were rising. The conclusion of the article was essentially lock now because the best rates are behind us. The fundamentals that supported this argument did not change and in fact still do support higher interest rates; investor sentiment however has quashed fundamentals leading us to some of the best rates in history. Here's a graph for those picture lovers out there.

So what fueled these gains, a weaker than expected non farms payroll (NFP) which is a jobs indicator and highly anticipated. Were expecting 513,000, got 431,000, most of which were public sector and census jobs. This weak jobs report essentially encouraged investors to take a hard look at long term markets where most have been investing hence the gains and lower rates.

So where does this leave us? It is Friday so I doubt lenders will be forthcoming in passing these gains along to the consumer. Expect some hedging in rates sheets this morning and perhaps even into the afternoon. Regardless it is a great day to lock. There are no guarantees that Monday or this afternoon even, do not result in a sell off ruining my good mood and your chances for an even lower rate. Currently 4.5% is paying a small rebate of about .125 and 4.375% is coming at a small up front cost of around .200... should our market hold or improve we will see reprices for the better... where secondary is 4.375% should be paying rebate, and 4.25% should be just next to available (definitely so if you're willing to pay some points up front).

In closing here is a look at a one year graph... notice the red dashed line running across the top of the graph... this is our historic low point. So close to setting history once again. You can be a part of it and secure your loan fixed rate. It is a phone call away... 760.730.5040