Due to an overwhelming number of inquiries over the past few days I am sending out this brief market update, which I know is a few weeks overdue for sure.
The Spring market for purchase and sale has been extremely busy, as has the refinance side of things, as such finding the time to put something detailed together has been a challenge. My apologies.
Every Spring for the past three years we seem to have the same situation, it is starting to feel like that Bill Murray Movie ‘Groundhog Day’.
A few Big Banks get their economists on the news telling folks that rates are moving up and they had better lock in, get out of the ‘risky’ (non-profitable) variable and into a nice ‘safe’ (profitable) fixed rate product.
Then each year we see rates trickle back down to the same or lower levels as they were at before. Lately all of the media attention has been on a 4 year fixed rate product that has in fact been around for months, and on a very limited ‘no-frills’ 5 year special – which ironically enough was available in November 2011 through the broker channel but received no fanfare.
This Spring feels no different than the last three because bond markets, stock markets, and the world economy is not what is being talked about as the impetuous for a rate increase, instead it is the Banks ending a 4 year fixed rate special…
There is still a 3 year 2.79, the 5 year rate remains at or near 3.19 with most lenders.
You can watch the long version at this link and gain a better understanding as to just what is going on.
Or the short version;
Prime is going nowhere, enjoy the variable. Fixed rates will move around a little bit, however have a strong likelihood of staying very close to where they are.