Want to Know Where Interest Rates Are Heading?
Knowing whether to lock your rate or play the market is always a hard decision. You should discuss this decision in depth with your mortgage lender or broker so that you can get all of your questions answered. However, to get a jump start on your decision making this is a quick and dirty way to figure out if interest rates will be going up or down.
First, Don't Watch the Following Indicators:
- Today's Headlines
- Last Week's Data
- Yesterday's Data
- 10-Year Treasury Note
- Talking Heads on the News
As the attached article details the 10 Year Treasury Note was up 81 basis points but mortgage rates rose .25%. So if you were following the 10 Year Treasury Note you would of been wrong.
Mortgage Bonds Is One of the Best Mortgage Rate Indicators
There are many factors that go into the interest rate the lenders will offer you. But the easiest gauge to follow the rise and fall of the price quote on Mortgage Bonds.
At the time of the article, Mortgage Rates were climbing around .25%, Fannie Mae (FNMA) 30 year 5.5% mortgage bonds dropped 103 basis points. So a drop in basis points for mortgage bonds correlates with a rise in interest rates. That's it.
Happy Buying Jacksonville!
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Posted by Carey Frankel on
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