New Year, New Trend for Rates

New Trend for Mortgage Rates

Shutdown Strategy

Well, hello there! Happy New Year and welcome to 2019. Yes, I know we’re quite a ways into the month but I wanted to pop in and offer you a look at the markets and how we’re ‘strategizing’ for our clients around this government shutdown. (No worries…this is still a ‘no politics’ zone;)

The shutdown has made a few parts of closing a loan more challenging, but it’s fine, we’re getting by. However, one piece of good news is that average mortgage rates have continued to trend steady to lower!

Now, this is market news I love to report because it means unexpected opportunities for you, if you’re considering a new mortgage or want to refinance. But this improvement in rates is certainly not without a good deal of risk. Risk because as soon as the government shutdown ends, stocks and thus mortgage rates will likely rise.

Now, we don’t get political around here, just discuss the markets. As we know, markets do not like uncertainty and the uncertainty being caused by the partial shutdown means that it’s anyone’s guess what will happen with markets when it’s all over. Not only is the duration of the shutdown uncertain, but also there’s lots of market and economic data that’s not being released because of the shutdown.

So, without the full picture of data, and the uncertainty in the markets, which helps mortgage rates stay lower, we are expecting stocks and bonds to move mostly sideways for the time being. But once the shutdown is resolved, all bets are off, if you know what I mean.

Rate and Fees Dropping too

Now, if you really love getting things on sale, read on. In addition to the drop in rates because of the shutdown, one of the main lenders we work with has dropped their rates and fees. Because of this and the current level of rates, I’m recommending that if you got your loan in the last year to consider a refinance. (And no worries – for many clients a no-cost refinance is an option). I’m doing my best to call my current clients and discuss your options, but if you miss my call, or want to beat me to it, give me a ring or text as soon as possible.

Well, my friends, that’s it for now! I wish you a fabulous weekend!