12/2/2013 - Last Week's Mortgage Rate Recap and This Week's Forecast

Last Week's Mortgage Rate Recap

Mortgage Rates Currently Trending: HIGHER

Last week was a holiday shortened week with little action except for Wednesday, when the MBS (Mortgage Backed Securities) market lost 34 basis points.  Trading was light due to the holiday, but we did end the week hovering exactly on our support level of 100.86.  Rates were mostly unaffected, but rebate pricing (the cost to obtain a rate or the credit the lender gives you towards your closing costs when selecting a rate) was worse due to the losses sustained for the week.  

 

This Week's Mortgage Rate Forecast

Mortgage Rates Forecast: NEUTRAL to HIGHER

This week we need to watch and see if we can find our way back above the 100.86 mark, or else settle in to a new trading channel.  This week's economic reports will include Thursday's Initial Jobless Claims as well as Friday's Non-Farm Payroll report, which are always market movers.  Unless we get some economic data this week pointing to a weakened economy, we will likely see rates go up another .125% to .250% by the end of the week. 

 

BOTTOM LINE:    This week will be volatile and working with your Loan Professional to monitor the market in real time will be key to staying ahead of lender reprices for the worse and higher rates/worse rebate pricing.   Remember, if you want to know the benefits of locking your rate today versus floating, simply give us a call at 3134-744-7806 (www.CallTheMoneyMan.com) who has access to real time Wall St. data and instant market alerts with breaking news.