Mortgage Rates Steady - MBS Moves Higher - Time to Lock

Mortgage Rates are still holding steady for probably one more day as the Mortgage Back Securities (MBS) were higher again today, further pulling back from a recent run to the lowest levels in nearly 3 months. Unfortunately, unless you were in contact with your lender today, the volatility seen in the past two days has been such that those who were pricing at the 4.25% level has come off that rate as 4.375% is in terms of the most prevalently quoted conforming 30yr fixed rate for the very best borrower scenarios.

As I reported yesterday, there was anticipation that the rates would move towards this direction as the behavior of the market usually proves that periodic pull-backs are to be expected since the rates really have been moving very fast to the new floor a few days ago.  Even though some of the data released today was expected, even with the ADP jobs report a bit lower than expectations, the market is still waiting for Friday's big Employment Situation report for the next major dose of motivation. The fork in the road seems to be bending towards higher rates as a relatively strong jobs report will solidify the bounce higher that has been developing over the past two days.

In summary, looking like things could swing the wrong way for us on Friday. Would be a shame if the past few weeks of gains were wiped out with one report on Friday, but it could happen.  One saying I cannot stop repeating is “Pigs Get Fat and Hogs Get Slaughtered” – and with the market doing what it is doing, I would not take the risk. Therefore lock before Friday if you can and if we don't see a rate jump so be it. Stocks are looking for any reason to rebound and a rebound would not help bonds.

For all of your financing needs in relationship to your home, please give me a call at 314-744-7806, or visit my website at www.CallTheMoneyMan.com.