Mortgage Rates Higher Again

Mortgage rates were higher for a third straight day as financial markets continue a measured correction from last Friday's volatility. At that time, headlines concerning Ukraine destroying a Russian armored convoy caused rates to move to their lowest levels in more than 2 months. Since then, it's been a steady march back in the other direction. The most prevalently-quoted conforming 30yr fixed rate for top tier scenarios remains 4.125% - 4.25%, but the closing costs has certainly changed in the past few days on these rates. 

MBS prices fell today, the 10yr note increased to 2.44%, but held support. The stock market continued to run higher. No real direct news today in terms of data points - just the FOMC minutes released this afternoon that caused a little additional selling. The minutes suggested more FOMC members were looking toward increasing rates sooner rather than later, in the end though, it is still all about the employment sector and consumer spending; neither setting the world on fire no matter and ignoring the substance of job creations, but the Fed still believes income slack will lessen. The housing sector still worrying about the Fed.

In summary, the FOMC minutes have not been friendly to rate floaters. Fed members point to the strengthening labor market which indicates hiking rates sooner rather than later. If you are within 30 days of closing, you should strongly consider locking now.

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.