Mortgage Rates & Trends 9/16/2013

Last Week's Mortgage Rate Recap

As we forecast in last week's commentary, last week saw rates remain flat, with a small improvement to rebate pricing as the reflection of a small improvement in the MBS (Mortgage Backed Securities) market for the week.  MBS and interest rates were less volatile last week than we've recently witnessed, as there wasn't a lot of positive or negative economic data to break MBS out of their tight trading channel.  Syria is now a non issue to traders after negotiations have removed the threat of US military action.  While it was nice to get a week without the swings we've become accustomed to, count on it to be short lived as this week will hold much more volatility.

  


 

This Week's Mortgage Rate Forecast
Mortgage Rates Currently Trending: NEUTRAL

This week will definitely prove to be much more volatile as the markets try to stay a step ahead of the news coming from the Fed.  All eyes are watching the reports leading up to Wednesday, when the Federal Open Market Committee meeting will occur.  Although the actual minutes from the meeting will not be released until October 9th, the markets are sure to move based on speculation and the post meeting press conference at 2:30pm Eastern by Fed Chairman Ben Bernanke.  Also coming into play this week is the replacement of Bernanke, as talk of potential candidates drives market movements.


BOTTOM LINE: The risk of floating loans is high as the FOMC meeting gets closer.  If the Fed announces that they will begin tapering, that will likely drive mortgage rates up.  It is critical this week to work with us at Midwest Mortgage Capital to stay a step ahead of lender reprices and market trends to protect your mortgage rate.

 

 
 
Be prepared for lots of interest rate volatility this week as the markets work to stay ahead of the Fed moves and speculation abounds.  You can contact us either at 314-744-7806, or click on the link below:
 
 

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