Mortgage Rates Remained Steady

Mortgage rates were up and down all day, but overall, the bottom line is that they did not affect the price all day as it remained steady from the close of yesterday.   We are still seeing 4.25% as the most prevalent quoted conforming 30yr rate for top tier borrowers with the only change in the closing costs.   

 

The day was volatile in the MBS market - opening better then took a dip before returning to just below the starting point through the afternoon. The 10yr did a bit worst - opened at 2.50% and then run up to 2.53%.   The bond markets that underlie mortgage rates have been almost completely uninterested in taking cues from economic data, even though that is historically what they do.  There are a lot of other sources of inspiration depending on the day, but today's moderate weakness came from news that Bill Gross, the manager of the world's largest bond fund, was leaving the company he founded more than 30yrs ago to join another, much smaller company.  This turned out to be a bigger deal for the US Treasuries than it did for mortgage rates.

 

In summary, after a rough couple of weeks, looks like rates may have settled in at current levels.  The big question will the tide turn downward is yet to be seen.  My recommendation would be to cautiously float unless you are closing in the next few weeks, where I think the reward is better than the risks that are out there.

 

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.