We’ve got big news! Today, rates are hitting lows not seen in nearly three years. If you’re purchasing or refinancing with Quicken Loans, today would be a really great day to lock in that low rate!
Oil is down about 5% as I write this, trading at around $28 per barrel. This is just the latest in a series of bad news items for the stock market. When it’s like this, I know not to check my retirement fund. However, bad news in stocks has a pleasant side effect for mortgage rates.
When the stock market goes on a down swing, people rush to the safety of the U.S. bond market for some certainty in their investments. Some of the bonds being bought up are mortgage bonds. When more people are buying these, rates drop because of the way yields work. While I won’t get into that here, the way all this works is actually quite interesting.
Lock in Your Rate Today
It’s important to remember that the financial market is a fickle beast. It has the potential to swing wildly from day to day. By locking in your low rate today, you have 40 days to take advantage of today’s fortunate events in the mortgage market by moving into that new house or closing on your refi.
Locking your rate also removes the problem of market uncertainty for you and frees you from worrying about fluctuations. If suddenly the stock market comes back tomorrow and the Dow is up 300 points, not only will your 401(k) be in better shape, but you’ll have locked in that low rate before bonds sell off and rates go back up.
If low rates sound good to you, apply today. You won’t regret it.
Still have questions? Let us know in the comments and we’ll get back to you.
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