Mortgage Interest Rates are Starting to Rise Again!!!

For the past week or so mortgage interest rates have been ridiculously low.  Similar to the stock market, interest rates rise and fall based upon numerous economic factors.  Today I received several “price adjustment” sheets from the lenders that I work with.  Price adjustment sheets are updated rate sheets setting for the programs and interest rates.  Whenever there is a change lenders will send these sheets to brokers to put them on notice of the price changes.  Last week and the week before I was receiving rate adjustment sheets reflecting falling interest rates.  I posted a blog encouraging everyone who has thought about refinancing to contact me to run their scenario to see if a refinance would benefit them.  If you are thinking about refinancing it is very important to be ready when the rates fall.  At any given time I am floating refinance applications while monitoring the rates waiting to lock when the rates fall.

Any one that has been taking advantage of their adjustable interest rates and living off adjusted rates around 3% should strongly consider refinancing and locking in a 30 year fixed rate while the rates are so low.  The Fed has indicated their desire to raise the interest rates by the end of this year.  Those borrowers who are on the fence or who are waiting could press their luck and lose out.

So far the interest rates have only increased around 1/8 to 1/4 of a point.  However, they fluctuate every day, sometimes several times a day.  MY ADVICE:  If you have been contemplating refinancing then you need to contact someone, preferably me, and have them get you prequalified and submitted to a lender.  Submitting to a lender does not obligate you in any way, HOWEVER, submitting to a lender does allow you the ability to be ready to lock a loan when the interest rates fall.  It is the only way to prepared to lock a loan when interest rates tumble.  Even if you start your application after the rates tumble there is a chance that the rates could rise before you can get into a position to lock the interest rate.

If you or someone you know is interested in refinancing or qualifying to purchase a home contact me today at 760-692-5950 or by email at Michael@MichaelGaddis.com.  I would not suggest waiting because the only way to guarantee an interest rate is to lock the interest rate.  You can only lock an interest rate when you are submitted.  Even if you want to wait and let the interest rate float, you need to be ready to lock when the opportunity strikes.

My finance company is Frontier Loan Group, Inc. CA BRE#01449152 NMLS# 345305.  My CA BRE # is 01433800 NMLS# 280011

 

 

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