Melissa's Mortgage Minute

The barn doors are open! The 10-year bond yields are out the door and up to 1.76%. Hey, don’t say that I didn't warn you!

Today was a day filled with volatility. Stocks tanked on election uncertainty, a stronger dollar, greater odds of a rate hike, and not to mention oil. Thus, the Dow closed down 200 points. 

The Dollar was .75% stronger today, and Oil fell back 1% but is still trading over $50. The Earnings reports have just started rolling out and Alcoa, the first to report had a big miss. Don't expect the earnings recession to be over quite yet. With no substantive data until Friday the markets will continue to be volatile.

Mortgage rates will suffer. In a world where bad news is good for mortgage rates, recent good news is bad for rates.  Plus, with the 10-year at 1.76% rates have nowhere to go but up. 

However, is this really a bad thing? When confidence is strong and net worth's are going up, (yesterday that was), buyers are more willing to buy. A stronger economy gives our buyers more reason to jump into the real estate market. Have we not been held back after labor day with the uncertainty of the election? Oil, of course. 

Look at it this way if you are borrowing $500,000 at a 1/4% increase in rate equates to $70.00 a month. Think about it…no Starbucks and you are good to go!