Mortgage Rates Staying Near 4-Month Lows

Mortgage Rates held steady for the most part on Thursday, keeping them in line with 4 Month Lows (a milestone reached last Friday). There were slight variations in closing costs between lenders, with some moving either higher or lower from yesterday, but not even remotely enough to change the prevailing rates. As such, the most prevalent conforming 30yr fixed rate remains at 4.125% for the best qualified buyers.

Despite an increase in the amount of economic data, activity was quite light in Bond markets, which include the mortgage-backed-securities (MBS) that most directly influence mortgage rates. Trading levels stuck to their recent ranges, but did follow movement in equities markets to some extent. As one originator told me today, "Extremely boring day for interest rates, but boring is GOOD! The less volatility the better. Range is tight, right now between 2.47-2.50, lookout for 2.55 if we break above 2.50. Floating is safe, especially on boring days. Closing within 7-10 days should lock."

In general, the more significant pieces of data coming up in the next two weeks are keeping movement subdued. We saw the same phenomenon ahead of the most recent jobs report, but we also saw how potent enough surprises can affect the stability. It makes sense to be ready to act quickly in terms of locking a rate.

Remember, if you need to go over any mortgage question, please give me a call at 314-744-7806, or click on the link below:

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