The Jimmy Rex Team

More news in the changing mortgage market. The new quarter has brought stronger investment in stocks and therefore a decrease in capital in the bond market. This means rates will increase somewhat. The window of great rates may not be wide open much longer. Because of tightening credit approval restrictions, many should try to take advantage of the government FHA program to get the most out of the current low interest rates. Here is Chris Jones’ detailed explanation:

Yesterday was the worst day for bonds in two months, as money poured out of the bond market and into stocks, leading to an almost 400-point gain on the Dow. Mortgage rates loosely follow bond rates, which rose from a low of 4.39 on Monday to 4.59 this morning on the 10-year treasury. That’s a gigantic move, and it’s pushed mortgage rates from 5.625% Monday to 6% this morning. I’d love to tell you that that means the worst is over, but I don’t think it is. Until credit markets unfreeze, we’re not going to be able to get substantially lower.

For more information, give us a call and we can help you understand why now is the best time to buy a new home!