Mortgage rates are heading lower again. Just when thought they had already reached bottom and were heading back up for good, down the go once more. This post explains the details. If you are wondering weather to lock your loan or not, this article may give you some insight on what you should do.
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Here’s the Story:
Last week, progress was made in the mortgage market as Treasuries rallied and prices of mortgage backed securities moved higher. By week’s end “rate sheet influential” MBS coupons improved in price by almost 0.50 discount points, bringing the par 30 year fixed rate mortgage back under 5% for the first time in almost two months. This rally in fixed income was led by a shift in investor sentiment from recovery to a stagnate economic outlook. This shift has resulted in market participants liquidating their risky equity positions and moving money into safer/risk averse fixed income assets like MBS and Treasuries.