Mortgage Rates Showing Very Little Change Today

The stock market opened better today as the interest rates markets have shown very little change since yesterday.  There are no economic reports today.  Without anything more important today markets are focused on the escalation of tensions between the West and Russia.  Yesterday the President added more sanctions and Putin immediately did the same.     Tit for tat   So far the sanctions and harsh words from the US and Europe have no real effect. A recent survey showed that Republicans and Democrats are divided 50/50 on increasing more international tensions - not exactly the kind of backing that the Administration likes to see.  In Europe any draconian sanctions proposed by the US are not going to go down well as Europe would feel the economic pain much more than the US.

The Markets will continue to be uneasy over the situation.  We have seen the stock market continues to move higher, the Treasury market, including the Mortgage Backed Securities (MBS) are holding well in the face of Yellen’s comments earlier this week. The 10yr continues to resist moving above 2.80% a very critical level for long term rates.

The rest of the day is not likely to change much in the bond and mortgage markets unless there is an unlikely escalation in the geo-political situation.   European countries are in a tenuous situation, needing Russia’s natural gas with the region’s economy still struggling.  The wider outlook for US interest rates is for increase, the present situation remains well contained.  As it stands now, there is no increase nor any decrease in rates for six weeks.  The lynch pin is 2.80% for the 10yr note, a move above it will likely set off additional selling. We do not believe the geo-political issues will prevail long with fears of escalation and that US rates will be driven by economic reports for March and April.  Under it all though most every investor, trader and economist is betting  and preparing for higher rates – the only question is when will this happen. 

My suggestion is to continue to cautiously float if you are a risk taker and want to roll the dice, but the wisest move is to lock and not look back.  AS I see it, the risks are far greater than the reward.  Pigs get Fat, and Hogs Get Slaughtered!

Keep a strong look at the markets and continue to cautiously float if you do want to take a risk.  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 me on 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.