Understanding Mortgage Rates | dripp inc | Home Equity | Refinancing and Remortgage Guide

Good Evening,

We just saw a huge pull back by investors cashing in on last week’s profits and dumping them back into the safe haven of bonds. As a result we should see slight improvements to mortgage interest rates tomorrow morning.

Here is what’s going on:

Most lenders re-priced and decreased mortgage interest rates late this afternoon. Look at the drop we saw at around 2:30pm after oil prices rebounded. Do not get me wrong; the financial sector is still giving the appearance that it isn’t as bad as we think especially since 4 out of 5 major banks reported much stronger earnings than expectations, but oil’s inconsistent rise continues to worry investors.

Simply Put: The important thing if you are refinancing or purchasing a home is to stay in close contact with your lender/broker, ask a lot of questions and stay up-to-date. If the market improves, you will have the edge. Tomorrow morning should be slightly better than today and we could see an even bigger movement in the afternoon.

Please e-mail me at Savvas@drippinc.com with any home equity or remortgage questions.