Quick update on where mortgage interest rates are today and where they’re headed. We touched all time lows on interest rates just two weeks ago on March 9th. But rates quickly reversed course and spiked higher. Jumping over 1% in just a few days. The reason for the drop was due to a flight to safe investments, like Mortgage Backed Securities (MBS), caused by the Coronavirus. The reason for the spike higher was liquidity issues in the mortgage backed securities market.
The Federal Reserve has stepped in will do whatever it takes to add liquidity back into the MBS markets. This is having an impact. We’re seeing rates trend downward and they’re headed back to test the low point we saw two weeks ago.
If you’re hoping to take advantage of these low rates with a refinance. Make sure you get your application started right away so you don’t miss out. Click to get started: Apply Now These dips in rates are short lived. Just because you start the application process doesn’t mean you have to lock in your rate. You can float it until rates get to where your comfortable locking in, or when they get low enough to make the payment savings make it worth while. Feel free to call Coastlend with any questions. www.coastlend.com