The Mortgage Man

Get more out of your mortgage experience!

Tuesday September 2, 2008

So, what happened with mortgage rates while you were weathering Gustav?

Well, the long weekend is over.  Summer has officially ended.  And, we are back at work to see what gifts were left behind by our friend Gustav.  Those who made the mass exodus from New Orleans are probably mad and irritated that they left.  But, it is that kind of thinking that gets people killed when the storm is worse than expected rather than weaker than expected.

New Orleans survived the storm, and for the rest of us on either side, it definately could have been worse.  But the markets today are reacting to the lack of any affect on the offshore oil platforms.  As reports from all of the companies with assets in the Gulf begin to come in, we are seeing that the damage is mininal if at all, and the oil traders are running for the hills because of it.

So what does this have to do with mortgages and real estate?  Well, the sell off in oil is creating a run on the stock market.  A run on the stock market is causing bond traders to sell bonds and buy stocks.  As the bonds fall from a sell off, mortgage rates rise.  Because of this, today is a great day to lock in your rate ahead of losses that are sure to happen this afternoon or tomorrow in mortgage rates.

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