Mortgage Rates Trends 8/26/2013

Last Week's Mortgage Rate Recap

Last week saw mortgage rates begin and end almost the same, with only a small change in rebate pricing.  However, that belies the real action for the week, where almost every day the MBS (Mortgage Backed Securities) market experienced movements of at least 50bps, and pricing changes came fast and furious all through the week.  Last week was a perfect example of why it is so important to monitor the pricing in real time, as some consumers saw a difference of .125% or even .25% in interest rate from day to day and sometimes within the same day.  Last week's volatility was mostly caused by the trader reaction to economic data released through the week as the markets looked for signs of if the Fed will begin tapering in September.

 

 

This Week's Mortgage Rate Forecast

Mortgage Rates Currently Trending: NEUTRAL

This week begs a close eye to the market as we have a huge week full of economic data releases and reports.  It appears that the markets have moved away from the idea that the Fed will begin QE3 tapering in September; the economic outlook still looks positive but there are some signs of cracks in the armor that may keep the Fed from acting in September as they wait for more consistent data that the economy is truly out of the woods.

BOTTOM LINE:  Having your mortgage rates hinge on a speculative and jumpy market doesn't make for a fun ride.  Severe volatility looks to be the continued pattern, making real time data extremely important.  Depending on your scenario, it may be prudent to lock your loan and move on.  The best way to know for sure is to talk to the Mortgage Professional who shared this information with you.

 

Remember that if you need any further questions answered, you can always contact me at 314-744-7806 or by contacting me at the link below...

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