Mortgage Rates Continued Lower - Belated Christmas Gift?

Mortgage Rates continued lower to begin the week after pulling back just slightly from 3-month highs on Friday. Activity continues to be subdued in the financial markets that underlie the day to day movement on lenders' rate sheets, making day-to-day changes less a factor of the day's events and more to do with random chance.

In addition to that randomness, there's certainly been default momentum leading higher in rates. In general, that momentum has now led rates back to longer-term highs seen in August and September right as the year draws to a close. While this isn't an environment where you'd want to plan on falling rates, the way that we've hit recent highs presents the first opportunity to see a pocket of improvement within the longer-term trend higher.

That said, the amount of improvement will be relatively limited ahead of next week's important Employment Situation report. It's entirely possible that we continue to hold the prevailing 4.625% level as the most prevalently quoted rate for ideal, conforming 30yr Fixed loans, with the only changes being seen in the form of closing costs.

In summary, a small belated Christmas gift to borrowers and originators today as rates dropped somewhat.  Existing home sales for November came in slightly below expectations, and prior months were revised downward as well, a small piece of non rosy economic news. Applicants who are floating loans may well want to examine today's pricing; with a shortened day tomorrow and markets closed on New Year's Day, lenders may price conservatively in the morning.

If there is anything that you might have a question on in regards to financing,  give us a call at 314-744-7806, or click on the link below:

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