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

Good Afternoon,

Although there is not much news to report today, bonds have been really strong lately even with all the inflationary concerns.  If you are still thinking of remortgaging or want to take out some equity from your home, it’s a great time to look into it now.

Here’s the inside Dripp…

All the negative headlines have pretty much been ignored by bond investors recently.  Bond prices have been going up for almost five straight days even with all the negative inflation news.  It’s probably due to the relief that retreating oil and gas prices have had and the increasing likelihood that Fannie Mae and Freddie Mac will be bailed out by the government.  Yes, the spread between interest rates and the 10-year bond has increased, but a healthy bond market still helps interest rates.  Here’s a great article about the recent bond market rallies and how it affects refinancing and mortgage rates. 

So, should you lock?  

I want to say yes, but I would hold off for just a little bit longer now.  Stay in touch, just in case things improve quickly and you have a chance to jump on a good opportunity.

Simply Put: A bond market rally is good news for mortgage rates.  What does a rally mean?  Picture a whole bunch of investors running around throwing their money into bonds.  Even though inflation has been a hot topic recently, there has been underlining news that has guided this reaction.  Lower prices of oil and gas ease inflation concerns and if the government bails out mortgage giant’s Fannie Mae and Freddie Mac, bonds become attractive.