Bond yields have increased prompting interest rates to rise on fixed terms. If the increase in bond yields continues upward the spread shrinks which could cause more rate increases. The spread is obtained by subtracting the bond yield from the new increased industry average 5 year rate. Will the rates fall back down again as has happened quite often in the past couple of years or is this the end of the ultra low fixed rate environment we have enjoyed? Wish we could tell you. What we can tell you is that if you are considering buying a home or refinancing or renewing a mortgage in the upcoming months, we can protect you as best we can by locking in a rate for you now. In most cases we can protect you for 120 days. If rates do fall back again, you would get the lower rate at time of closing. If they don’t fall back and we get further increases, you will be glad we locked in a rate for you now. In either case it is in your best interest to do it now.
What else is new in the mortgage world? Money continues to be tight with lenders not granting too many exceptions. Our advice is to come and see us before contemplating a new mortgage so we can ensure the best result for you by preparing up front. Keep your credit card bills up to date even if the minimum payment is a small amount. Any late payments are being scrutinized carefully by lenders. We can give you advice on how to get your credit score up as much as possible.
Even with the recent rate increases, rates are still low making it a good time to get a mortgage. We are here to help and welcome your questions anytime.