LIME REALTY GROUP often checks the mortgage rate to see where the markets are heading and today we heard some news about an upcoming movement in the rate. According to analysts, the sluggish upward movement of the rate is largely due to the weak consolidation movements in the bond market. Right now, a 30-year fixed rate is 4.7%.
There have been a series of dramatic sell-offs over the past couple months that have caused the rate to jump so these little episodes are not good news to fans of low mortgage rates and the fact is, they’re probably going to keep happening.
If you’re searching for a clear reason why these sell-offs are taking place you’re not going to find one. They’re simply the result of accumulating pressure in traders converging on a position. As they wait for the expected move to happen and the movement starts to go in the opposite direction, they have to move to hedge or cover their bets. When a large number of traders do this, more and more fringe traders are forced to follow suit and that triggers these unpopular sell-offs.
For those of you shopping for a home, a higher rate means your dollar buys less home. The best way to combat a climbing rate is to lock one in as quickly at possible. For more information on how to do that and how it will help you, call Lime today and meet with one of our specialists to help you secure the financing you need for your new home.