You may or may not have noticed the change in interest rates this week, but it’s been a little crazy. Last week we saw a sharp increase by about a quarter of a percent, and this week we saw the exact opposite. Up until Thursday rates were going down.
A lot of the experts are saying that the increase in foreign conflict is a cause for the interest rate drop we saw early this week. The idea is that as the foreign conflict increases, the stability of our economy gets shaken, which ultimately leads to a possible delay with the pull back by the Federal Reserve from the bond market.
Another idea is that as things get more unsteady around the world, investors tend to slip a little more into the bond market, and the bond market is a direct driver of interest rates.
With rates where they’re at right now, it’s an amazing time to get a new VA home loan. Historically speaking, rates are dramatically lower now than they were just 5 years ago.