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

Good Afternoon,

I was correct to suggest that you lock in your interest rates now because they are going back up again. There is whole lot of news today that is affecting the economy and mortgage rates. Today’s Consumer Sentiment Index was a little higher than expected, but by a very small margin. The consumer’s attitude about their finances is still the lowest it has been since 1980. However, the final reading was slightly better than expected, which does not help mortgage rates. Also, oil prices reached another record high as of 11am and the dollar has weakened even more stimulating more fear of inflation. This is also not good for mortgage rates. Today rates are a little higher and I suspect that they will continue rise into next week.

Simply Put: Consumer’s attitude about their finances is low, but not as bad as what was expected. Oil is at an all time high because Iran’s missile launching fiasco is causing fears of disrupting supplies. The dollar has weakened even more and inflation is becoming more of a reality. Not good for rates.

Should I lock if I’m closing or plan to refinance within:
- 15 days? YES
- 30 days? YES
- 45 days? NO
- 60 days? NO