Orange County homeowners and homebuyers have noticed over the past 12 months that rates are constantly moving up and down. Just when you think interest rates are going to stay low, an announcement by the Fed, or some event, either good or bad, will push mortgage rates either up or down. It seems that no matter how many analysts you listen to, nobody can really know for sure where rates will be from one day to the next. But there is a science to it, and there are ways to educate yourself to made a wise decision on when to lock a rate. Below is a great video which explains how mortgage rates are determined.
Orange County Mortgage Rates Have Remained Low
Despite the common thinking that mortgage rates would go up after the Fed stopped purchasing Mortgage Backed Securities, the opposite has happened. Rates, after a slight uptick, have improved. The reasons for the improvement have much to do with what is happening around the world. The struggling European economies, specifically Greece and Portugal, have helped to weaken the Euro and strengthen the dollar. This is helped to improve mortgage rates. Also, conflicts in Israel and Korea are helping to keep rates low. And of course China has continued to purchase our Mortgage Backed Securities. All these things have combined to keep rates low. Just remember, bad news is generally good news for mortgage rates. Hurricanes (not necessarily in Orange County), earthquakes (there we go), floods, and wars are all things that actually can result in lower mortgage rates.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact me for more information about an Orange County, CA home loan. 877-786-4243 x 7.
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