Dec 01, 2013

- originally posted November 1, 2013 -

Economic numbers have been coming in for the month of September, and they don't look good. The affect on interest rates is good though, and it translates into more stable, if not lower, mortgage rates in the coming weeks. Driving these lower rates is the recent jobs report. Not only were the employment numbers weak for September, but there were "revisions" made to prior months' jobs numbers, that revealed the previous jobs numbers were weaker than originally thought.

More poor economic news may be lurking. The impact of the government shutdown still hasn't been factored into these recent job losses and employment numbers. We'll know more in a few weeks, probably by mid-November. Most economists are expecting that report to be dismal as a result of the government shutdown.

The bond market is the primary vehicle that drives interest rates. Bonds have been climbing in recent weeks on this poor economic news, and that causes an opposite reaction to lower interest rates. If I were a betting person, mortgage interest rates will probably drop back to the record low levels we saw in the Spring, just before the end of this year.

Till next month,

 

Interest Rates As Of November 1st, 2013

6-month trends graph - as of November 1st, 2013

 

 

 

 

Interest Rate Advice

The long term expectation is for interest rates to rise. Don't take these low rates for granted. If you're financing a home right now, my best advice is to "lock-in" these low rates, rather than gamble that they'll be lower as you get closer to your closing date. Better be safe, than sorry!

If you're in the market for a home this year, allow me to help you find the right lender and loan program, and help you take advantage of these great low interest rates. Today’s interest rates are still quite a bargain!