Santa Cruz Sentinel – 09/22/2019

Q: Last week you were talking about rates going up, but I saw where the Federal Reserve just dropped rates again. Shouldn’t that give us the lowest rates in the last few years?

A: The GOOD NEWS for mortgage borrowers is that rates are again DOWN to near the lowest levels in the last few years. However it is not as simple as the Fed lowering rates. The Fed can drop the discount rate for overnight borrowing for banks and this always effects the prime lending rate which is the basis for consumer loans and auto loans. However mortgage rates are the result of the sale of mortgage backed securities which are bought on a daily basis by traders on Wall Street and all over the world. Lately, in September traders have sold bonds and mortgage securities and bought stocks, which has pushed rates up. This has been due to optimism regarding the trade war with Chin

Various economic reports and turmoil in the Middle East have combined to influence traders to buy more bonds lately and that has pushed MORTGAGE RATES BACK DOWN. With so much domestic and turmoil and unrest lately it is hard to see the stock market making any kind of lasting rally–which is GOOD FOR RATES.

After seeing rates drop to the lowest levels in years, they gave back their gains and rates ticked up about 1/4% in the first weeks of September, but TODAY RATES ARE BACK DOWN AND THAT MEANS REFINANCING OPPORTUNITIES FOR MANY BORROWERS ARE HERE AGAIN.

How long rates stay down and how much further they may fall is unknown at this time, but, again, it’s hard to imagine a stock rally with all of the strange and disturbing news we are seeing. My advice to anyone with a mortgage rate above 4% is to call me and get going on a refinance or prepare to make a move when the time is right. You can reach me at 831-818-7700 or send email to I offer real time interest rate an mortgage program information seven days and nights a week. A competent mortgage advisor can be extremely helpful in times like this were rates are so volatile and the news is filled with such dramatic turmoil, so I advise anyone thinking of refinancing or buying a home to get in contact with me to devise a winning mortgage plan and strategy to achieve their financial, real estate, mortgage and debt consolidation goals.