Last week interest rates increased slightly. Why? Mortgage Brokers I work with say, when Stocks go up Bonds go down and mortgage rates go higher. They tell me there are three reasons that happened last week;
- A Brexit deal between the European Union and the United Kingdom has been reached, although it has yet to be passed by the UK Parliament. Whether or not this will happen is obviously still unknown but it has renewed optimism in the Stock Market which is not good for the Bond Market which hurts interest rates on home loans.
- An unexpected positive outlook for the future by many public companies and strong reported corporate earnings caused upward movement in the Stock Market last week. Again not good for Bonds and mortgage rates.
- Optimism that China and the US may reach a deal on the Trade War has contributed to Stocks going up and Bonds going down.
Despite the recent uptick, home loan rates are still at three lows. Given recent trends I don’t think you will see rates get lower. Now is a great time to buy! If you or someone you know is interested in a new home or condominium in the North Tahoe, Squaw Valley or Truckee region please give me a call. 530-923-6020.
Click here for a detailed report from the staff at Movement Mortgage on the cause of the recent movement of interest rates.
Leave a Reply