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Apr 10

Interest Rates Bouncing Around

Mortgage backed securities are being choppy today, they are the driving force behind mortgage interest rates.  The market opened strongly this morning gaining up to 12/32 before I left for lunch.  Interest rates do the opposite of the price of the bonds, if bond prices go up interest rates go down.  When I returned they had pulled back to 4/32 and I received an alert recommending lock.  

Clients frequently ask me if I think rates are going lower.  Anyone asking this question may want to calculate how small the difference of another 1/8 of a point interest makes.  When you see how small that difference is it may seem like a good idea to follow the advice of the alert I just received and lock that rate!

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