Mortgage Rates - Is The Weather to Blame
There's
lots of talk recently about the effect that the weather is having on the
economy. What exactly does that mean?
When the weather is as unseasonably harsh as this winter has been, it causes disruptions in consumer patterns, especially things like spending. People who are unable to leave the house aren't looking at new homes, aren't out shopping, and aren't buying things (except maybe snow shovels and rock salt). In fact, there are estimates that up to 30% of the gross domestic product is directly or indirectly affected by weather and climate. This winter, the number and intensity of winter storms has stalled pockets of economic activity across the country. The weather has been cited as a factor behind a series of poor economic report results, including December's super weak jobs number and the recent ISM manufacturing survey.
The result of these weak economic reports on Mortgage Backed Securities (MBS) over the last few weeks has helped mortgage rates stay low. When spring comes, we can expect mortgage rates to sprout up along with those spring flowers.
Today rates should remain flat, with slightly improved rebate pricing. Today the Mortgage Backed Securities (MBS) market is likely to stay within the trading range that has held for almost two weeks. Beware the daily volatility though; depending on where the MBS market is at the time of lock could affect the rebate pricing.
Remember, if you want to know the benefits of locking your rate today versus floating, simply give me a call at 314-744-7806, or visit my website at www.CallTheMoneyMan.com. I have access to real time Wall St. data and instant market alerts with breaking news that I monitor throughout the day to assist us on making the informed decision.
When the weather is as unseasonably harsh as this winter has been, it causes disruptions in consumer patterns, especially things like spending. People who are unable to leave the house aren't looking at new homes, aren't out shopping, and aren't buying things (except maybe snow shovels and rock salt). In fact, there are estimates that up to 30% of the gross domestic product is directly or indirectly affected by weather and climate. This winter, the number and intensity of winter storms has stalled pockets of economic activity across the country. The weather has been cited as a factor behind a series of poor economic report results, including December's super weak jobs number and the recent ISM manufacturing survey.
The result of these weak economic reports on Mortgage Backed Securities (MBS) over the last few weeks has helped mortgage rates stay low. When spring comes, we can expect mortgage rates to sprout up along with those spring flowers.
Today rates should remain flat, with slightly improved rebate pricing. Today the Mortgage Backed Securities (MBS) market is likely to stay within the trading range that has held for almost two weeks. Beware the daily volatility though; depending on where the MBS market is at the time of lock could affect the rebate pricing.
Remember, if you want to know the benefits of locking your rate today versus floating, simply give me a call at 314-744-7806, or visit my website at www.CallTheMoneyMan.com. I have access to real time Wall St. data and instant market alerts with breaking news that I monitor throughout the day to assist us on making the informed decision.
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