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my question's about trends for mortgage rates.

Do mortgage rate trends capture the time of year that mortgage rates are the lowest? by smallpaul671 from Indianapolis, Indiana. 10 days ago Reply


William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,625 contributions

Your question is confusing.. so i'll have to guess at what you are asking.. if you are asking if rates are the lowest during a particular time of year then say other times of the year.. then no.. there is no such trend.. Rates are driven by the pricing of Mortgage backed securities. *(MBS).. MBS's are sold on the bond market. An MBS is bond where Fannie/Freddie buy all these mortgages, block them together, and sell securities against them.. So how is pricing derived?? When stocks are doing well, investors trade stocks and the bond market is ignored.. in order to attract buyers, the returns for the bonds are raised.. the only way to do this is to raise the interest rates. Conversely.. when stocks are doing poorly, then investors flock to the bond market.. The return can be lowered since there are so many buyers.. this helps lower rates.. Good financial news can be bad for the bond market and vise versa.. Just like everything in life, there are always exceptions.. so this isn't always the case,but it is the majority of the time. If you are looking to purchase, and you are trying to "time the market" to get the lowest rate possible, then I would say that effort is useless.. I have a borrower who 2 years ago, though that 3.75% was too high.. he wanted to wait to see if rates would drop another 1/4 or more.. I advised him that was a terrible idea.. and that it would cost him.. Here we are 2 years later, and he just went under contract on the EXACT SAME HOUSE he was trying to purchase 2 years earlier.. the home is $45,000 more and the interest rate is 4.375%.. Over all, he's paying over $350 a month more.. and lost out on $45K in equity trying to chase a 1/4% in rate. If you are looking to buy something, then I would say get with a competent loan officer, apply with them.. and as soon as you can, lock in the rate and don't look back. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

9 days ago
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