Your opinion on how Wednesday went for mortgage rates depended entirely upon what time you checked the news.
If you looked at a rate report as soon as you woke up (assuming you get out of bed before 10 A.M.), you will have seen a rate higher than the one that existed when you went to sleep the night before. The bond markets weren’t in the best of shape on Wednesday morning. As these are one of the strongest drivers of mortgage rate movement, those rates were up early in the day.
Now let’s assume that you are the kind of person who wakes up at 10 A.M. If that’s the case, you may have seen that mortgage rates were at a new eight-month low, as of your initial viewing. An economic report was released mid-morning, which in turn caused stock prices to drop dramatically, which has a tendency to drive mortgage rates down as well. Rate reports were recalled and a newer, sunnier message was presented.
Until the afternoon.
Things had started to drift back toward the higher numbers shortly after the morning low announcement, but the equities markets managed to recoup their earlier losses. Stocks fall, mortgage rates go down. Stocks rise, mortgage rates go up. So it was on Wednesday. By now, some lenders had recalled their rate sheets several times during the day.
The ultimate summary? If you looked at the market at the end of the day, with no idea what had progressed throughout the previous 12 hours, you might assume that nothing happened at all. The most common 30-year fixed rate mortgage rate is 3.75 percent, not a wild shift from the day before.
What does that mean for potential borrowers? Don’t push your luck…lock in that rate now.
“I can’t see a reason to float outside of pure greed,” said Constantine Floropoulos, vice president of Quontic Bank. “Old saying: Pigs get fat, hogs get slaughtered. I think locking in makes the most sense.”