After a long march upward, the US stock market has been taking a beating in the last week or so. The Dow Jones Industrial Average is down nearly 800 points for its high point at the end of December. The other indexes are seeing similar sell offs over the last ten days.
While the stock sell-off is not great news for the portfolios of investors, it has been good news for mortgage interest rates. As investors pull money out of stocks they tend to invest money in other places like mortgage backed securities and bonds. That inflow of money leads to lower mortgage interest rates. And as expected, mortgage interest rates have been drifting lower in the last week.
Odds are that mortgage interest rates will move significantly higher over the course of 2014, but there will be dips along the way. We are entering one of those dips right now so if you have considered looking in to refinancing your mortgage or buying a home, contact us right away. There is no telling how long this dip in rates will last or if we will see a dip in rates like this again.