Today’s dismal jobs report has pushed the yield on the US Treasury bond below 4%. This decline in yield has directly impacted mortgage rates, causing them to tick down today. Rest assured, this is not clickbait but data-driven facts. Whether mortgage rates will continue to decrease remains uncertain. Typically, mortgage rates tend to decline when the economy worsens. Unfortunately, economic downturns often come with negative consequences: people lose jobs and may need to sell their homes quickly, leading to lower comparable sales.
Currently, we are experiencing a unique situation—a combination of high home values and decent, falling mortgage rates. This scenario presents both opportunities and challenges for different types of borrowers.
For Those Considering Cash-Out Refinances
If you’re looking to do a cash-out refinance, be mindful that waiting for lower rates might coincide with lower home values. As the economy potentially moves toward a recession, home values could decline, reducing the equity available for cash-out refinancing. It’s a delicate balance to strike, and timing will be crucial.
For Home Buyers
For those in the market to buy a home, the most important thing is to find a property that you love and that will suit your needs for at least the next seven years. The beauty of securing the right home now is that you can always refinance later if mortgage rates drop.
Our Commitment to You
At Choicelend Mortgage, we strive to provide the lowest mortgage rates possible. We work on low margins to ensure you get the best deal. If you have any questions or need a quick quote, don’t hesitate to reach out to us. We’re here to help you navigate these changing economic conditions and make the best decision for your financial future.
Thank you for considering us for your mortgage needs.
