The media is always a lagging index. When they announce that anything is at it’s highest, or lowest, it’s obsolete information. Today the media indicated that mortgage rates are at it’s lowest in 3 years. Reality, the rates have been in a tight range for a few weeks. Today the rates actually marginally went up.
Mortgage rates closely correlate with the movement of the 10 year note. If you look at the chart of the 10 year note, you can see technically how over the past few months the rates have been bouncing off support at just under 1.7%. Today the 10 yr note popped up to 1.75%. It’s a good indication that the rates may have seen it’s lows for this immediate cycle, but there has been a lot of conflicting economic data released.
The Federal Reserve wants to increase the Fed Funds Rate, but has been on hold because of weak international economic conditions. We’ll have to keep an eye on the technicals. The increase in oil prices can affect the inflation rate, and give the Fed ammunition to make a move.
As a generality an “A” level conforming rate is around 3.625%, but remember, rates go up faster than they come down.
If you are in the Los Angeles region, have any questions or real estate sales or financing needs, feel free in contacting:
Ron Henderson GRI, RECS, CIAS
President/Broker
Multi Real Estate Services, Inc
Gov’t Affairs Chair – California Association of Mortgage Professionals
www.mres.com
ronh@mres.com
Real Estate market, Mortgage rates, Los Angeles, San Fernando Valley, Conejo Valley, Simi Valley
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