The stock market this week reached a new all-time high and then promptly gave it all back later that same afternoon. What is significant about this you might ask? The bond market reacted the way it traditionally does! When the risky stock market is doing favorably the safe bond market -the typical dictator of mortgage interest rates- tends to not fare so well, and vice versa. The volatility of the mortgage market over the past few months had caused a detour from the traditional action/reaction of events. This return to traditional market movement over the past week is possibly another sign that things are beginning to settle a bit. It will certainly take time for things to get back to normal, but we might be heading that way!
How does this affect me if I am buying a house or if I want to refinance? With a market that appears to be getting back to normal, you may begin to take action with some comfort that the major volatility is behind us and smoother sailing can be expected. Rates are great and the buyer's market means that there are plenty of homes from which to choose.
*Information courtesy of Lewis Brooks with PrimeLending
Next time...bird seed.
3 months ago