Mortgage rates going up?
January 22nd, 2008 - Categories: Buying a home in the Dothan area, Financing, Real Estate News
By: Charles Woodall
http://www.dothanhomesearch.com
Could be. If you have been watching the mortgage rate gadget on your right since we added it, you’ve noticed that rates have dropped of the past couple of weeks. With the 75 basis point reduction in the fed rate Tuesday morning, that may come to an end.
Here’s a previous post on how this all works
In a nutshell, mortgage rates are closely tied to treasury bonds. When the stock market lags, more money goes into bonds because they are safer. When stocks become more attractive, money goes out of bonds into the stock market, which makes bonds cheaper and typically raises mortgage rates. So when the stock market hits bottom, then mortgages rates will have likely done the same.
Yes, it is confusing. Know this though; conventional wisdom says that rates in the mid 5’s may not be around long.
By the way, we have agents standing by to help you buy before the rates go up 