“Interest rates are rising!”
“Interest rates are staying the same!”
“Interest rates are going to drop!”
You’ve probably heard all of these statements in the past few weeks, but they obviously can’t all be true—what’s really going on?
According to Scott Boaman from Synergy One Lending, who has more than 30 years experience in the industry, the current buzz around interest rates tends to miss the mark. In truth, mortgage rates are not a direct reflection of what’s being decided by the Fed at any given point in time. The correlation is incidental—not inherent.
In short, you should take what you hear about interest rates on the news with a grain of salt. The headlines are always outdated compared to what’s happening now, and, beyond that, they don’t usually get it right to begin with.
The bond market is actually a much more accurate measure of what will happen to interest rates moving forward. The ups and downs of the bond market directly affect mortgage rates.
Of course, knowing what rates are doing is only part of the puzzle. It’s also important to know when to strike if you’ve got plans to buy or sell. If you’re looking to buy, for example, it’s best not to wait around for rates to drop significantly. Instead, connect with a professional like Scott to determine how you can best take advantage of where they’re at right now. And given that rates are still very favorable, historically speaking, it’s a great time to make a move.
If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.