We have published our mortgage rate report for February and March – tracking recent movement with graphs, and speculating how mortgage rates might move in March. You can read the full thing HERE, but for this post, we will summarize some of the most important points.
[Note: over the past week, rates have dropped about 1/4 of a point in cost and more, a welcome decline after February’s increases. For the most recent rate summary, go HERE.]
Mortgage rates jumped in cost at the end of January and early February, an increase that continued throughout the month. What had happened?
“Most of February saw mortgage rates remain flat at levels approximately 0.250 percent above historic lows,” said Central Coast Lending co-owner Daniel Podesto. “This was mainly due to improved housing and employment figures and lack of opportunity in bonds – low yields and declining prices – in driving investment into equities.”
As the end of February neared, mortgage rates saw some relief and fell back to the levels we saw at the beginning of the month.
“The last week of February enjoyed a rally in bonds to bring the 10-year yield back to below 2.000 percent,” said Podesto.
Moving forward, we do not anticipate major mortgage rate movement one way or the other, baring a large, market-shifting event.
“I do believe the lowest interest rates are behind us, and it would take a catastrophic event to move the 10-year back down to the 1.500 percent range,” said Podesto.
The best course of action to lock in a low rate?
“Take advantage of days like today with a 1.85 percent 10-year [Treasury], as it will likely not last with most investors looking for more opportunity outside of bonds.”
To maximize your opportunity to lock in a low rate, get pre-qualified now (805.543.LOAN) and we will track the market movement for you, so that we can pounce when he time is right. Follow along with rates on our CCL Rate Tracker, where we update rates every Monday and Thursday.
You can also sign up for our twice-per-month CCL Rate Tracker email, which follows 10 loan programs and gives three pricing options. Email email@example.com with the words “CCL Rate Tracker” to subscribe.