Just When You Thought Mortgage Rates Couldn’t Get Any Flatter
Matthew Graham | Mortgage News Daily | Apr 21 2015 | link
Mortgage rates are on the warpath, blazing a ferocious trail in a more sharply sideways direction than we’ve seen in recent memory. This won’t last. It never does. But it’s, as yet, unclear what the catalyst will be for the breakaway. From there, it’s even less clear if the break will be higher or lower. A case can always be made for either, but certainly, cases for rates bouncing higher have been much less tenable over the past 30 years (though they have their moments, like the Spring of 2013). Whether or not you see one here will depend on your time horizon.
Even in long term downtrends (like the one stretching back to the beginning of 2014 fairly reliably), there are periodic corrections that mark good opportunities to lock in rates. With that in mind, it’s worth considering that rates are experiencing this flatness right in line with the best levels in more than 2 months. Historically, these have been great opportunities to lock for anyone with an approved loan in process. For those with longer-term time horizons, floating isn’t an insane idea here, but be sure to set a line in the sand where you’ll lock at a loss if markets move against you.