Happy Monday. It’s Josh Lewis, Certified Mortgage Consultant, with BuyWise Mortgage here with the weekly interest rate update.
Just wanted you to give you a quick little look at where we are at with interest rates. Some good news here. So first thing we want to look at here is over the last 30 days.
If we go all the way back to November 8th. Today’s December 10th, so just about the last month, we’ve been in almost a straight line up in bond prices, which again, is good for us because that means bond yields or interest rates are down.
So that’s the good news. If we look back here, rates are at their best level since September and maybe for the better part of the year, our best point was about 102 and we’re currently at 101 1/4.
So we’re about an 1/8 to 1/4% off of the best levels of the year. So good news, we were a good bit worse here.
We were probably 1/2 to 5/8 worse than the best levels of the year and over the last month, we’ve seen this improvement.
So what does that mean for us right now? Wanted to point out this little chart right here. The statistics show us that we are and continue to be in a really overbought state, meaning that we’re likely to see some reversal here in the short run.
And if we were to look at the chart for the S & P 500 day and other stock indices, positive chart patterns are there, which would indicate that we’ll see some money rotating back out of bonds and into the stocks.
So it doesn’t mean that we are giving up on this positive run in interest rates, but we’re likely to see some pull back.
It’s pretty rare that we see a straight shot of a month where nearly every day other than one, two, three, four, four out of the last 30 days have been worse every other day interest rates have improved.
So likely we’re going to see some pull back here. If you’re in escrow, if you’re thinking about refinancing here between now and the end of the year, even the first part of the year, probably a good idea to lock in some of the gains that we’ve seen here.
So once we get towards the first of the year, we’ll do a longer, more in-depth analysis of what we think is going to happen over the next 12 months, but for the short run we’re probably seeing the best levels here for the end of the year. We’ll be back next week with next week’s market update.
Have a great week. Enjoy the holidays and we’ll talk to you soon.