Interest rate
The mortgage rate shifted slightly down this past week. This is no surprise. While people are concern that the Feds might raise the rates, there are several contributing factors that will keep the rates down.
One is the fact that demand for loans are down, therefore lenders have to compete for the business. According to Mortgage Bankers Association, “The Market Composite Index, a measure of mortgage loan application volume, was 527.6, a decrease of 1.2 percent on a seasonally adjusted basis from 533.8 one week earlier. This is the lowest that the index has been since May 2002. On an unadjusted basis, the Index decreased 1.4 percent compared with the previous week but was down 29.0 percent compared with the same week one year earlier.”
The unstable ongoing war situation effects the bond and treasury market, and in turn influence the mortgage rates. Bankrate.com reports that “People all over the world buy U.S. Treasuries and mortgage-backed securities as safe investments during wartime, pushing down the yields of those financial instruments.”
What this means for you is, if you are in the process of obtaining a mortgage loan, don’t lock in the rate yet. Catch it on a good day to get a better rate.