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

Good Afternoon,

Mortgage interest rates have been as volatile as they can get our shaky economy the last few days.  From Monday 9/8 through Thursday 9/11 lenders were offering the lowest rates we have seen in seven months.  At the end of Friday the 12th’s business day they were offering more than a half of a percent higher.  This morning’s interest rates were again higher than yesterday, so it is safe to say that if you are refinancing or purchasing a home, being ready to lock in an interest rate along with constant communication with your broker/lender is the key to getting the best possible mortgage rate.  Read our Lock Tips here.

Here’s the Inside Dripp…

You have all heard the news about the turmoil that has been experienced by all the huge financial companies the last two weeks.  This uncertainty has influenced investors to dump stocks at a record level.  The Bond Market, which is tied to mortgage interest rates, has gone dramatically gone up.  As a result mortgage rates came down.  Unfortunately it did not last.  Alternative outlets of investments such as gold, which is usually the safest hedge against losses, are becoming more popular.  This does not help the bond market and as result rates have not stayed low for more than 4 days. 

So, do you lock in a mortgage rate now?

This is not an easy question.  The real question should be: Should I be ready to lock?  The answer is an emphatic YES.  For those who did not lock last week, you missed this window of opportunity, but we suspect there will be more to come within the next few weeks.  However you have to be ready because those amazing low Mortgage rates only reveal themselves in brief spurts, which is why being in constant contact with a lender or broker is so important. 

Tomorrow, the number of new jobless claims will be released.  If more than expected filed for unemployment last week, rates may improve again.  Analysts expect 440,000 new claims.  Stay tuned…

You may contact us by filling out our form…click here.

Good Afternoon,

If you have inquired about a refinance within the last two years please read closely.  The Dow Jones Industrial Average dropped over 500 points today, which is the biggest drop since 9/11.   Due to this financial MELTDOWN, Treasuries bonds increased and since mortgage rates are tied to the bond market, mortgage interest rates are reaching their lowest levels in history.  These mortgage rate cuts will not only help the struggling economy as a whole, but they will help people like you and me on personal financial level. 

If you currently have a rate higher than 5.875%, give us a call and we will let you know what interest rate you qualify for on the spot.  Do not let this opportunity pass by you.

Here’s the Inside Dripp…

The hot topics have been the bailout of Fannie Mae and Freddie Mac, the Bank of America buyout of Merrill Lynch, Lehman Brothers filing for bankruptcy, AIG is in financial trouble and industrial production in the US has fallen, to mention only a few bloody events darkening the skies over Wall Street.  Read about the economic turmoil here.  An immediate result of this will be more layoffs and a rise in unemployment, which also helps to stimulate lower rates. 

All this news shook Wall Street to its knees and with tomorrow’s Consumer Price Index (CPI) coming out as well as a FED meeting, which will probably issue another drop in the Federal Funds Rate, tomorrow will be another heart pounding day. 

Read our Article about how to lock into the best possible rate by clicking here.