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For those of you that floated your rate last week, as I recommended, you just hit a bomb home run! And if you locked in on Thursday, you hit it clear out of the ballpark!
So what happened on Thursday? On Thursday I was anxiously waiting for the Manufacturing, and Junes New Home Sells reports, when those reports showed weaker than expect numbers for Manufacturing, and the new home sells report showed a larger than expected decline, investors jumped from stocks (I’m sure you heard about the 400 point hit to the Dow on Thursday) and into bonds. When bonds go up, mortgage rates go down. And go down they did on Thursday, posting lower rates than I’ve seen in about six months. Oh so crazy!
Interest rates today are an eighth of a percent lower than a week ago, rebounding on Friday and today from Thursday’s low numbers; if you haven’t locked yet, I recommend you lock in right now.
If you’ve been on the fence about purchasing a home or refinancing, take advantage of these rates and start making offers or lock in your refinance. Even if you missed Thursday’s rates, by locking today you can still save an eighth of a percent over last Monday, and an eight of a percent over the life of a 30 year mortgage will save you thousands of dollars, so when they dip like they did last week and today now is when you want to buy a home or refinance.
This coming week there will be two days you’ll want to have your mortgage professional on speed dial and at the ready, Tuesday and Friday. Looking at Tuesday, there are three reports that can affect mortgage rates: First are June’s Personal Income and Outlays, then the 2nd Quarter Employment Cost Index, and then finally the Conference Board’s Consumer Confidence Index report; and then later in the week Friday’s Employment report will be very important as well.The bottom line is that this is going to be an interesting week for mortgage rates, and I expect the most movement in the rates on Tuesday and Friday. The market is expecting weak numbers that means if any of the reports are more positive than expected mortgage rates can skyrocket very quickly. It’s been said that you should keep your friends close and your enemies closer, but this week you should keep your enemies close and your mortgage professional closer.