Where are mortgage rates headed?
My concern for anyone looking to buy in the coming months is that they get a pre-approved rate guarantee sooner than later. Given last week’s events (rising bond prices, dollar, oil and gold) triggered some lenders to raise their fixed term rates.I am wondering whether we may be at the ‘bottom’ of the Fixed rate decline. No worries on Prime increasing anytime soon and Variable rates are still low and should likely remain so for awhile, however the catch-22 is that for anyone more sensitive to larger increases in Prime, by the time that Prime increases to the point they feel they want to lock in, Fixed rates may well have been on the increase for some time and they may have lost the opportunity to benefit from today’s historically low Fixed rates.
There is so much conflicting economic data these days, and there remains a great deal of uncertainty as to which direction the economy is ‘really’ going to be headed in the coming months/years, with a question as to whether the ‘rally’ some feel we are experiencing may just be a temporary surge only for another deeper plunge/downturn to be on the horizon.
Despite the fact that everyone would like to see things turning around, I think this roller coaster ride may have a few more ups and downs, twists and turns to go yet. My opinion on all of these mixed economic indicators and economic uncertainty is that folks simply can’t go wrong by playing it safe and locking in at 5-year Fixed still available below 4% – especially the first-time buyers!!
Words of Wisdom shared by; Liz Doyle, Owner/Mortgage Broker of Centum Mortgage Options Inc.
