South Orange County Blog from Bob Phillips

With Mortgage Rates, You Can’t Shop For Good Luck

Posted in home affordability, mortgage rates, Real estate, Refinances by southorangecounty on May 12, 2009

Getting a good mortgage rate is often a matter of good luckAfter a series of increases starting April 30, mortgage rates finally took a dip Monday.  It was a welcome surprise for home buyers that went under contract over the weekend. 


Same for homeowners looking to pull the refinance trigger.


Versus mortgage rates on Friday afternoon, many lenders were already showing lower rates Monday morning before a late-afternoon rate sheet reprice even lower.


The drop in rates lowered annual mortgage payments by roughly $180 per $100,000 borrowed.


Rate dips like this aren’t expected, of course, bringing us to the one of the most important axioms of shopping for a mortgage rate: You can’t shop for good luck. This is because mortgage rates are inherently unpredictable. 



  • On some days, rates are higher
  • On some days, rates are lower
  • On some days, rates are unchanged

Occasionally, there are days when rates are all three.


Monday’s rate dip, though — while sharp — may not last.  Early this morning, markets were pressuring mortgage rates to rise and lenders are often quick to pass rate hikes on to consumers.


With a little bit of luck, you’ll get your rate locked in before changes for the worse.

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