Mortgage Blog

Some agents asked me the same question over the weekend. And I said that we saw the short term bottom last Wednesday. 

The main reason for the rate up was because the market's speculation of the Fed's June interest rate hike for another 0.25%. And not long ago, the market expect the next increase will be around December time. And suddenly it went up in one day.

I did get some report last a few weeks to warn me that we may some the interest rates going up in the summer, and the "summer" could be June or July or August. And my interpretation is July. So it was a little bit earlier.

But the other side of the story is that, the stock market will be down another 10% to 20% during the summer. Those are just the experts' opinion. But if we see 10% to 20% down in the stock market, we should expect better interest rates, right?

But no matter who is correct, I still believe that the rate will not go lower from here. But it will not go up too much. So it will go up slightly.

I have some clients got the rate reset letters from the lenders. And the reset rate is between 3.25% and 3.5% for 5/1 ARM(and fixed for only one year). So it is the time to start locking the rate if your ARM rate will reset soon.