Mortgage Rates End Lower After Another Volatile Week

Mortgage rates ended lower after another volatile week.  This is somewhat refreshing because after yesterday’s ride, historically it results in an upward full pressure.  Even though the gains todays did not push rates as low as they were earlier this week, the most prevalently quoted conforming 30yr fixed rates for top tier borrowers was still at 4.0%.

Not a lot of activity ahead of the FOMC meeting next week.  Yesterday the 10yr  held its first support level at 2.30% but at 2.27% it has not moved away from it much. The stock indexes continue to climb - at times it appears nothing will stop stocks from increasing. The indexes have recovered all of the declines in the last two weeks.

This week was thin on data, but next week the FOMC meeting is the hallmark; other data includes Sept durable goods orders, personal income and spending, Q3 employment cost index, two readings on consumer attitudes, the Chicago Oct purchasing mgrs. index and Treasury will auction $93B of 2s, 5s and 7yr notes.

Technicals still looking good but as long as equity prices continue to increase rates are going to have a difficult time declining unless there is a geo-political event of some kind that sends the fear of god into markets. In retrospect, if you would have floated all week or locked everyday it wouldn’t have made much difference. The bond and mortgage markets are a traders’ venue these days. Week on week; last week and this week there has been little change when scoped on a weekly basis (Friday to Friday).

In summary, rates have been slowly drifting higher this week but we are still below a key level at 2.28 on the 10yr note. Helping yields to stay below that key level was news yesterday's of a doctor in New York with ebola. What makes this much more scarier than the news a couple weeks ago from Dallas, is New York is one of the most populous areas in the world. If we get any news of a 2nd person with ebola in New York, rates will most likely move lower. That said, i would float over the weekend and evaluate pricing on Monday morning. But as always, if you are happy with the terms of your current offer, go ahead and lock as that removes all risk. Only those who can afford to be wrong should risk floating.

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.