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Should I Lock Rate Now?

I just read rates hit the highest in in over a week. I am curious what jobs report will bring tomorrow. Is the consensus that rates will continue to go up? by seebs336 from Newark, New Jersey. Apr 4th 2019 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

Mortgage interest rates are driven by the pricing of Mortgage Backed Securities *(MBS), and they are traded on the bond market. Typically, when the stock market is doing good, the bond market is ignored, so in order to attract buyers, they have to raise the rate of return offered to investors, which results in rates going up.. Conversely, when the stock market goes down, then investors flock to the bond market and a buying frenzy ensues.. they can offer lower returns because of the volume.. this results in rates going down. Since good job numbers would be a positive thing for the stock market, it would be a bad thing for the bond market.. and as such, rates could rise a bit.. Realistically, i'm writing this after the report has been released, and as predicted, the numbers were good and the stock market did like it, but it didn't get crazy, so there was only a slight movement, but nothing to be concerned about.. This all being said, you should absolutely lock and don't look back. First, when rates improve, it's a slow process and stretched out over a longer period of time.... but when rates deteriorate, it's fast and swift, and over a short period of time.. The likelihood of seeing a 1/8th better rate would be sacrificed at the risk of maybe having to pay a quarter to a half point higher rate when considering the short amount of time you can float before locking.. 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

Apr 5th 2019
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