You don’t have to ride Aerosmith’s Rock N Roller Coaster at Disney Hollywood Studios if you want to accelerate from 0 to 57 mph in just 2.8 seconds; you can just watch the mortgage interest rates in any given day if you want a true thrill ride. (Well, that’s a slight exaggeration, but you get my meaning.)
We’re currently experiencing multiple intra-day re-prices on mortgage rates. As the bond market continues to go off the hook, the prices go up. This is just something you should expect to see if you’re shopping for mortgages; it is primarily a direct result of the government getting into the business of manipulating mortgage interest rates and investors of these mortgage bonds worrying about inflation.
For investors, inflation equals death. (You remember inflation. A dollar today isn’t worth a dollar tomorrow…) So if an investor wants to earn a reasonable rate of return, but is worried about future inflation, they will ask for higher interest rates now to compensate.
All I’m saying is, wild fluctuations in the bond markets inhibit lenders from getting the same prices they quoted to a client at 10am that morning later that same day…or even at noon that same day! You just never know! Each day is its own unique roller coaster ride. And since these rates will corner like they’re on rails, if you like it, lock it. Otherwise you can just strap yourself in and hope for the best.