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

Good Afternoon,

It is incredible how a shift in attitude can really cause the stock market to rally and ultimately change the course of a week. In many ways it has been expected because of the bounce-back that is inevitable with the U.S. markets like the Dow Jones Industrial Average. Investors have been waiting for this. If you are refinancing you should stay in close contact with your mortgage banker.

Here’s What’s Happening:
In general, corporate earnings have been better than expected, which causes investors to dump bonds and place their money into the stock market. As a result we will see mortgage interest rates go up again today. Jobless claims were slightly lower than expected as well. We should all know by now that if more people are working, the result is the increased strength of an economy. With the quarterly earnings of Google, Microsoft and IBM coming out soon, which will most likely be pretty solid, we should see a continuation of this activity through next week.

Simply Put: Corporate earnings have been better than expected this week, which has stimulated investors to feel more confident in the economy again. This is bad news for the bond market and we should see mortgage interest rates continue to rise in to next week.

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