If you were one of those homeowners in Utah who happened to consult Google for “mortgage rate news” over the weekend, you might have been puzzled by the top two results.
Fortune got the top spot, with an article headlined, “Your 30-Year Mortgage Rate Should Be Lower Than It Is Now.” That might have rightfully ruffled your feathers. After all, if the mortgage rate news is that your rates are higher than they should be, just what kind of chicanery is going on—and who is behind it? This sounds like a greed-inspired ploy of some kind—and details that you’d better read at once!
But, had your eye fallen on the second headline before you clicked on that first, you would have seen the Mortgage Reports blog top line, which was not even slightly conspiratorial-sounding: “Average US 30-year mortgage rate falls to new 2016 lows.”
Taken together, mortgage rate “news” like this could save you the trip from Utah to Disneyland. Why stand in line for the spinning Mad Tea Party ride, when all you have to do is ask Google for “mortgage rate news” to get dizzy?
What’s really going on???
Googling further would have helped explain. Bankrate told “home-shoppers” that they should “be cheerful: Job growth in June was surprisingly high”—but since that news hadn’t affected mortgage rates “much,” there was a confluence of good fortune: an economy that was perking up but not enough to raise interest rates.
The most encouraging mortgage rate news was actually sounded by The Wall Street Journal, which claimed to explain “Why banks aren’t giving you a 3%, 30-year mortgage…yet.” “Yet”??? The WSJ went on to explain how current “super low” rates could head even further south—but it called for a super robust reader attention span. If they stuck with it long enough, though, Utah readers discovered that bank profit margins (the “spreads”) were rising while mortgage rates fell because government bond yields had fallen even faster.
You might recall that at one point, Disney put a limit on how fast riders are allowed to spin the Mad Hatter’s tea cups—but apparently nothing of the kind is planned for the financial world. So the first two Google finds for “mortgage rate news” are correct: the rates are even lower than before (per Freddie Mac, 3.41% last Thursday) and it’s reasonable to suggest they could be lower.
All in all, it looks like there is even more reason than ever to take advantage of this particularly rewarding era for Utah’s real estate offerings. Getting started is easy: just give me a call!