Winter Haven Mortgage Rate Shoppers Should Consider Locking Sooner than Later
Going on three weeks in a row now, mortgage markets improved early in the week, but gave back gains before markets closed on Friday.
All told, we didn’t see any movement last week, as mortgage rates started and ended in pretty much the same spot. However, those who locked in mortgage rates on Tuesday received a decidedly lower rate than those who waited until Friday.
One of the biggest mortgage rate drivers last week was a series of strong corporate earning reports, including those from financial entities Goldman Sachs and Citigroup.
This news pushed the Dow Jones Industrial Average to its 6th consecutive weekly gain – helping to establish the market’s longest winning streak in two years and its best 6-week rally since 1938, percentage wise.
Consumer Confidence Rising – Higher Mortgage Rates Ahead
I’ve said several times on this blog that the best indicator of economic strength is consumer confidence. As such, there may be hope yet. According to a survey, Americans are feeling better about the economy than at any time since last September’s meltdown.
I’ve also said that when the economy improves, and folks move money out of safer investments (bonds) into riskier financial vehicles (stocks), mortgage rates tend to suffer.
When market risk is reduced like, say, following 6 consecutive weeks of gains, the safe haven of bonds loses some of its importance to investors.
As a result, bonds start to sell-off so more cash is available to invest in equities. Bond prices suffer when investors begin to take on more risk via stock investment because mortgage rates are based on the price of mortgage bonds, mortgage rates suffer, too.
The Week Ahead – Economic News and Indicators to Watch
Several large corporations will be reporting first quarter earnings this week including banking giants Bank of America and US Bank, in addition to stalwart companies like IBM, AT&T and McDonald’s. Strong earnings may — again — lead mortgage rates higher.
If you’re among many folks in Winter Haven, Florida who are waiting for mortgage rates to “bottom out”, consider that we may have already reached bottom and might be headed on the way up.
It’s tough to follow mortgage rates in real-time so, at least in the short-term, you can find some clues in the stock market. If stock markets are rising this week, it’s likely mortgage rates are, too.
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I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!
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There’s no doubt things are improving. Slowly maybe but it looks like the worst is over. Hopefully it won’t be too long before the mortgage market, and the rest of the economy, is back to somewhere near where it was.