Wednesday, August 27, 2014 - Article by: Nevin Williams - Sierra Pacific Mortgage -
Current mortgage rates are slightly better.
News of a truce in Israel wasn't enough to convince investors that the worst has come and gone. Fears that the US may become more involved with fighting ISIS is another reason we are seeing investors buying bonds as a way to move their money to safety. I wouldn't be surprised if we see a few more trading days of improvement before bond traders sell bonds and take profits.
October is when the Fed will stop it's mortgage bond buying program. Many speculate that with the growing US economy it is likely that there won't be much demand for bonds which would likely result in mortgage rates rising sharply. It isn't until it is too late that people react though so I expect to have a busy November and December as fence sitters finally pull the trigger in a rate rising environment.
For those of you who don't want to have a higher mortgage payment, NOW would be an ideal time to get started with the loan application process. Email or call me (919) 863-4370 with any questions about mortgages or rates.
Rates have improved over the last several days but we are getting close to our second level of resistance which simply means that when we hit this line it is likely that bond investors have made a nice profit and will sell their bonds. When bonds sell, rates rise short term and then the cycle starts all over again.
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