Mortgage Rates Down as Bonds Thrive
Mortgage rates are poised to end September on a strong note. Entering the final week, rates moved close to recent lows experienced in the previous week. We can likely expect many borrowers to see these same rates through Friday, enjoying noticeable gains in the form of low closing costs and high lender credit. All in all, it’s one of the best days we have seen since early May.
This strong activity can be attributed to broad economic weakness. Fears among investors are driving stocks downward, which is generally good news for the mortgage market. The Federal Reserve’s decision to keep interest rates near zero has not provided investors with the certainty they need to pour money into riskier assets, so money has been moving out of stocks and into bonds, causing prices to go up and rates to go down.
Anybody planning to close on a loan within the coming thirty days may be well advised to lock in to current rates. Contact us to talk to a Lynnwood mortgage broker right away.
