The market continues on its erratic path. With the agreement by BP to put $20 billion in escrow, stocks turned around into positive territory. Remember as stocks recover from the most recent correction, upward pressure will be applied to bonds. Mortgage rates are still incredibly low and there could never be a better time to buy a home then there is today.
This article (below) from our mortgage information service, discusses the Federal Funds rate (currently .25%) which affects the prime interest rate (currently 3.25%). Fixed rate mortgage are not tied to this rate and will continue to float based on the bond yield.
WASHINGTON (MarketWatch) – “Economists at 14 top The Fed can afford "a wait and see attitude" because inflation is not a threat, said Scott Brown, chief economist at Raymond James and Associates.
At the start of the year, the economists had generally expected the Fed to start tightening by December and saw a risk of higher inflation.
But this view has changed over the past six months. Now the greater risk is for deflation.”
One of the most obvious factors that affect your
ReplyDeletemortgage is your credit rating. The better your credit rating, the better your mortgage rate will be. Those with lower credit ratings will pay higher mortgage rates. This is the lender’s way of protecting itself from the danger that someone with a poor credit rating will default on a loan.