Mortgage Rates Drop – Get Off the Fence

Falling Interest Rates

Best Mortgage Interest Rates Arizona

On Friday April 5th bad news was great news if you’re a fan of record low
Arizona mortgage rates
.

If  instead, the stock market is what you have on your radar, well turn off the news and check back in next week to see if things get better.  From January 24th of this year up through the last week of March mortgage interest rates were on a slow yet steady escalator gradually lifting them to higher levels.

This first week of April 2013 put a staggering halt and dramatic reversal to the mortgage rate ascent.  In fact this week accounted for the recovery of most of the increases Arizona mortgage rates have seen over the past 60 + days.

 

Why Are Arizona Mortgage Rates Dropping?

To put it simply, rates dropped as a result of a very dismal jobs report.  The first drop in rates this week occurred when experts official predictions (aka educated guesses) were released stating the consensus was that the jobs number would be skinny.  Then, when the actual report hit on Friday rates fell further and they fell fast!  Right out of the gate on Friday, mortgage rates were down as much as .25%.

When jobs data is poor that means companies are not hiring.  Companies stop hiring when they aren’t making money.  When companies aren’t making money their stock value suffers.  Instead of pushing money into stock, investors place their capital into bonds.  Bond prices go up when this happens and when bond prices go up, mortgage rates go down!  That is what happened on Friday.

In life, many things are mutually exclusive.  Great pizza and an ideal body fat percentage.  A puppy and clean carpets.  A house full of distant relatives and sanity.  See, sometimes we just cannot have our cake and eat it too.  We have to pick one thing over the other.  Well, on days like Friday this logic is not lost on the mortgage rate market and the stock market.  You can either profit from a booming stock market or you can save money with record low Arizona mortgage rates.  Friday, those pulling for low mortgage rates got their way.

Second Chances Don’t Come Often

If you missed your window of opportunity to leverage the record low Arizona Mortgage Rates we had this past winter, this might be your second chance.  Could I be writing an article in one month titled “I Can’t Believe Mortgage Rates Are in The 2%’s?”  Maybe (unlikely).  I am not crying  out some sort of a reverse Chicken Little “the sky is falling” this is your last shot ever message.  However, history is a great teacher and  history tells us:

1. We do not see mortgage rates this low very often
2. The number of times rates have fallen significantly below where they are today is very very limited

My advise, do not get greedy and take advantage of where we are.  What is the worst thing that could happen?  You could lock in at an all time low Phoenix mortgage rate and rates fall so far that you refinance later on to take advantage.  The flip side (if you wait for even lower rates and they rise) is that there is no going back.

If you or anyone you know is looking to take advantage of today’s Arizona mortgage rates to purchase a new home or refinance please call or email us today!

By Jeremy House
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