Delaware Mortgage Rates Dip Down to end the week
Delaware Mortgage Rates dipped
Delaware Mortgage Rates dipped down today January 5, 2007 because of the drop in the stock market today. The drop in the stock market saw money moving out of stocks and into safe assets like mortgage bonds. The average rate on a 30 year mortgage dipped 0.1% down from the mid week high to 6.29%. Beware websites or TV ads quoting low mortgage rates. The low mortgage rates quoted are based off factors that most people don’t qualify for and may include discount points that are buying down the mortgage interest rate. Be sure to contact a Delaware mortgage professional that can explain how the mortgage rates change and how your choice of loan programs can affect your mortgage interest rate. Call 302-703-0727 to talk to a Delaware loan officer.
Mortgage rates are determined by a bond that is bought and sold just like a stock. If the price of the mortgage bond moves higher then the interest rate for that bond will move opposite which is lower. If the price of the mortgage bond moves lower than the interest rate for that same bond will move higher. The price of the bond moving is measured in basis points. Typically if the market moves by at least 20 basis points (bps) then the market will re-price and the interest rate will move higher or lower depending on which way the price of the mortgage bond moved.
John R. Thomas – NMLS 38783
Certified Mortgage Planner – Primary Residential Mortgage, Inc.
302-703-0727 DE Office / 610-906-3109 PA Office / 410-412-3319 MD Office
248 E Chestnut Hill Rd, Newark, DE 19713