The stock market has taken a severe beating so far in 2016. The major stock indexes have been tanking for weeks now. While this is bad news for investors, it has become good news for folks looking to refinance a mortgage or buy a home. Mortgage interest rates have improved significantly in the last few weeks.
As usual, when stock market values drop quickly, investors race to safer investments like U.S. Treasury bonds. As more bonds got bought up the yield on those bonds drops. And as we’ve noted in the past, movement in mortgage interest rates tend to mirror the yield on the 10-year T-note.
There’s no telling how long this dip in rates will last, so contact us today in the sidebar to get an estimate on a refinance. Now is a great time to look into lowering interest rates, getting cash out, or shortening the term of a mortgage. Or contact us on our home purchase page to look into getting pre-qualified to purchase a home.