Recent strength in the stock market and stabilizing existing home sales (figures released yesterday morning) are contributing to a weakening in the bond markets.
Current 30 year fixed rates are 6.125%. However this is only for a 30 day lock, with a 10% or more down payment and a loan amount of between $200,000 & $417,000. If a borrower is putting less down, needs more then a 30 day lock, or has a smaller loan amount, the 30 year rate could be 6.250% to 6.375%
I do not think it is likely rates will move much higher, but, if economic reports continue to be favorable, the move to higher rates could remain or inch up slightly. These are still historically very attractive rates, but they are not the under 6.000% rates that we have been enjoying for the past several weeks.
Guest blogger, Michael Polera, is a loan consultant with Baird & Warner Financial Services. Michael can be reached at 847.818.6029 or by email at firstname.lastname@example.org.