Mortgage Rates Are Lower Again

Mortgage rates moved dramatically lower today as we are seeing the rates retreat back to the mid-November 2013 time frames.  The trigger started overnight when the weakness was in equities and foreign markets continues to promote strength in US bond markets, including the Mortgage Backed Securities (MBS) that most directly influence mortgage rates.  This further solidifies 4.375% as the most prevalently quoted conforming 30yr fixed rate for ideal borrowers.  There were still some at the 4.5% range and there were some trying to push it even lower.

This roller coaster has been going up and down since the ride began in May of 2013 after the jobs report that first Friday of the month.  We saw a steady ride to the top range in September and have been twisting and turning up and down with the data as it relates to the economy.  We have seen the 10yr US Treasuries hover between 2.5% and 3.0% while mortgage rates have been between 4.25% and 4.75%.

When will this ride end?  When will the floor be the bottom, or will that erode even further?  If you don't want to try to predict the future and/or try to analyze anymore data,  it would not be a bad idea to take the improvements that are on the table and lock in your rate.

In summary, today's rate sheets are the best I have seen in months as lenders finally passed along some of the recent improvements. I strongly advise anyone closing within the next 30 days to go ahead and lock in today.  When it comes to rates, there is always a chance that rates can go up or go down and right now is no different. However, I think after what has been some consistent improvement, right now the odds are greater we see them INCREASE vs DECREASE. I strongly suggest taking your gains.  

If there is anything we can do to assist you on your financing, give me a call at 314-744-7806, or visit the website www.CallTheMoneyMan.com.