Charlotte Mortgage Rate Trends

I have been advising clients that Charlotte mortgage rates are beginning to trend upwards. However, many people still believe that because the Fed rate was just cut, we will see a dramatic drop in the 30 year fixed rate mortgage pricing. This is just not true.

The Fed Rate cut directly impacts short term lending. This includes rates usually tied to prime rates, such as credit cards, home equity lines and even some short term ARM mortgages. Longer term mortgage rates such as a 30 year fixed conforming loanare typically driven more by the bond market. As the price and yields fluctuate on the bond market, so go the 30 year mortgage rates. The longer term bond markets, including the 10 and 30 year bonds are usually the ones to watch.

Currently Charlotte mortgage rates are near 40 year lows. Thinking that they will have some dramatic drop may be a dangerous gamble for some. I have some clients right now that want to float their rate, against my advice. I have warned them that they may wake up tomorrow and find a steep increase in the rates… it has already done that once in the past 30 days!

So in order to help people see what is happening, I am going to create a “Rate Watch Experiment.” Over the next few days I will track and post to the website what changes are happening to Charlotte mortgage rates. You may notice changes 3-4 times a day, which in today’s market is normal. I am hoping that by doing this, the general public in Charlotte (and beyond) will get a better idea of what to expect with mortgage rates.

For more information, follow the Rate Watch Experiment.

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