Melissa's Mortgage Minute
Down they go....
The Dow dropped 237 points for its biggest loss in four months! Financials led the way with Bank of America dropping 6% as investors are revisiting their expectations of gains from President Trump's policies as his pro-business agenda is showing signs of stalling.
The 10-Year bond yields also fell closing at 2.41%. Quite the new low for March! Following the trend, oil and the Dollar fell as well. Kansas City Fed, Esther George, commented today that the Fed needs to be careful not to raise rates too quickly.
Mortgage rates did not make any major moves but are slowly going lower. The best 30-year fixed at 4.00% is now available from more lenders and if yields continue to drop we could look for rates to fall below 4.00%. Which isn’t quite what we expected after last week's rate hike!
The big loser in mortgage lending continues to be home equity loans. The prime rate is now 4.00%, a full half percent higher than it was in December, and that can mean real money depending on how much you owe. With first mortgage rates stabilizing, now may be the right time to think about consolidating your home equity loan with your first mortgage.