Good news for the stock market is bad news for mortgage interest rates. At least that has been the general rule over the last several weeks. As more investors move money into the surging stock market they are taking money out of bonds, and money leaving bonds tends to lead to higher mortgage interest rates. The trend in mortgage interest rates over the last 8 weeks has been upward, albeit slowly, as the DOW has surged to 5 year highs. But over the last few days the DOW has given back some of its gains and thus bonds and mortgage interest rates are slightly improving again in response.
If you have been considering taking advantage of the near-record-low mortgage interest rates we have been experiencing lately, or if you have considered taking advantage of the government-sponsored mortgage refinance programs that are now available, this is a good week to get started. With any luck the trend upward is over for a little while and mortgage rates will trend back down for the next several weeks. Contact us in the form on the right to learn more about available programs and to get an estimate.