Arizona Mortgage Rates are supposed to be through the roof right now right? As soon as the Fed pulled out, mortgage rates are supposed to float up like a 3 year olds party balloon stuffed full of helium sadly drifting skyward. Well if that’s the case we are still waiting for the inevitable. That 3-year-old has let a little slack out but still has a firm grip on the string of her buoyant balloon. Rates are still at record lows overall to the surprise of many.
How long will mortgage rates stay low?
What every Arizona mortgage broker has a similar reply to the “how long will these rates last?” question. It goes something like “let me get my crystal ball out…” While corny, this canned comeback is accurate. There has never been a way to definitively handicap rates. However, the rate market we find ourselves in currently happens to be even more mystifying than it has been in years. The daily pattern has been one of rates up in the am followed by an afternoon market rally bringing rates down below where they started the day. The strange part is the consistency in this recent “up then down” pattern.
Bad News is Good News for Mortgage Rates
One dichotomy that exists in the mortgage rate world is that bad economic news is typically good news for mortgage rates. Recently this pattern is alive and well. Recent jobs reports indicate that fewer jobs were created than the experts expected. This of course is not super exciting news for the economy. However, mortgage rates improved (declined) on the negative news release.
Part of the answer to “when will rates rise?” can be guessed at based on the direction of the economy. It is safe to make the educated guess that when the economy improves rates may also increase. So in essence, predicting rates partially involves predicting the economy. That doesn’t make it any easier , it just shifts the soothsayer’s focus from rates to the economy’s performance. Both tough to predict with precision.
For Now – Take Advantage of a Healthy Rate Market
For those that keep waiting for that perfect day to lock in the perfect low-interest rate on their Arizona mortgage stop waiting! That is like predicting the perfect time to buy a stock or better yet guessing what day of the year will be the warmest!
By Jeremy House