Yesterday was an unbelievably active day for the bond markets. We saw wild swings in interest rates through out the day. When the day began the 10 Year Treasury Bond yield opened at 3.51 and almost immediately swung down to 3.33 and finished the day at 3.60. That meant that for a small window of time (about 3 hours) mortgage rates dropped to 5%. But that drop was short lived. As usually happens when the Feds lower rates, we see a short dip followed by a slow extended increase in long term interest rates. The 10 Year Treasury Bond is up .15 today which may be an indicator rates will be back up to 5.75 by tomorrow.
Time is always of the essence when it comes to locking in interest rates. Please contact a specialist at VARefiCenter.com for advice when it comes to interest rate lock timing; and if you are set on getting the lowest rates, be prepared to move quickly.
We should go through something very similar to this in a few weeks as the Feds have indicated they may cut another key interest rate soon. The overall forecast is for long term rates to inch upward over the next few months.
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