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Mortgage rates went lower this week as the Freddie Mac weekly survey showed rates at 5.38%.  Average mortgage rates have been all over the map lately so it is not surprising at all that this is a bounce back from 5.59%.  The question that remains is “will it save you any money?”  Honestly, rates bouncing around like they are is unlikely to save you any money.  I have several friends and family members that locked in around March and April at all time lows, but now things are much different.

Mortgage lenders see fluctuating average mortgage rates and they also notice the the 10 year treasury yield has been in an uptrend for months.  I am not saying that the lenders are going to try to screw you out of money, but they are not stupid.  They realize that mortgage rate trends may be reversing and that we could see rates in excess of 6% soon.  The fact that inflation is a possiblity has also played a part in this artificial mortgage rates market.  The last time we saw huge inflation, mortgage rates went to 17%.  I seriously doubt that will happen again, but it sure is on peoples minds.

Overall, unless you are extremely saving and know exactly how to play the mortgage market, rates bouncing around is not going to help you save money.  It may actually cause you to lose money as the housing market continues to fall with the uncertainity of average mortgage rates.