Mortgage Rates End A Bit Higher After a Wild Week

Mortgage rates ended a bit higher from yesterday after a wild week, but are still at 16-month lows.  After the last three wild and crazy days, the most prevalently-quoted conforming 30yr fixed rate for top tier scenarios now stands again somewhere between 3.875% and 4.0% depending on various fees, but now pushing the higher side.  

Today stocks rebounded and the bond market saw yields edge up a little, but when seen on a week to week basis markets don’t look quite as bad as the sentiment was on Wednesday when the US treasury markets experienced a final capitulation by investors and traders that were hanging on for higher rates.

We have to keep both eyes on all global markets; until a month ago we didn’t hear much about the other markets around the world, now a wakeup call maybe, that the US can’t withstand the estimated growth that was dominating US markets. We have mentioned it many times here, most every assessment of growth issued periodically by the IMF, World Bank, ECB, Bank of China, the Federal Reserve and the Bank of Japan have been revised lower since the beginning of the year. Every three months we get the forecasts and each one has been revised lower from the previous quarter. Stocks were ignoring it all with most focus on earnings frm public companies that have been reporting solid earnings and forward guidance. Not so much now; now it is back to basics, and the basics don’t justify the current valuations in equity prices.

In summary, mortgage bonds were very resilient in the face of a huge equity rally. I am encouraged by this and see it as a sign that rates may stay at these levels for a time or possibly move lower. As we know things can change quickly but floating over the weekend may be a safe move.

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.