Mortgage Rates Should be More Active Next Week

Mortgage Rates were even more unchanged today than yesterday. Not only was the average rate among various lenders unchanged, but individual lenders all stayed closer to the yesterday's rate sheets, whereas some were a bit higher or lower yesterday.

That said, the flatness was only accomplished after some mid-day price changes when improving market conditions allowed lenders to release better rate sheets. Before that, the day's average would have been slightly higher. 4.625% remains the most prevalently quoted rate for ideal, conforming 30yr Fixed loans.

Although the holidays are officially behind us, the bond markets that underpin mortgage rate movement have managed to remain in "holiday mode." Part of this has to do with the fact that this week still contained a day and a half of down time for bond markets, but the blizzard in New York certainly didn't encourage traders to be in the office.

This time around, light holiday activity didn't result in any extreme volatility for interest rates, as it sometimes can. Although we shouldn't necessarily expect excessive movement in either direction, the level of activity should pick up next week. More traders will be back from vacations (forced or otherwise) and important data will require more attention, especially Friday's Employment Situation Report. The implication of increased activity is more potential movement in rates, for better or worse.

In summary, maybe next week will shed some light on whether the higher rate trend continues or has hit resistance. The last two weeks have not been friendly (even in light trading) to rate sheets.  If I were seeking a mortgage, I might just consider locking.   If the non- friendly trend in the lightly staffed holiday season continues with volume behind it, it could get ugly, fast.

If there is anything you might have a question on regarding financing for your new home or investment property, please give me a call at 314-744-7806, or click on the link below to my website:

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