Mortgage Rates Are Not Moving

Mortgage rates are not moving – as it seems like everyone has packed up their bags and went home for the holidays.  What is characteristically uncommon, it goes to show that market participants increasingly tune out on big holiday weeks. The most prevalently quoted conforming 30yr fixed rates for top tier borrowers has been more towards 3.875%, but 4.00% was still out there with no fees attached.

Quiet today as expected ahead of the holidays that is starting today in the financial world. From now until early January we call it silly season not that markets won’t react with any new news but because without anything surprisingly new there isn’t going to be much to chew on for traders but interday volatility will continue in a vacuum. Most large investors have second stringers manning the desks, just in case. Without a shock of some kind institutional investors and big hedge funds have already closed the books. 

Rate markets remain technically bullish even with the equity market running higher almost every day. The 10yr has support at 2.20/2.21% as we have noted. I like it but there are times I want to stand aside in terms of short term trading. MBS prices were flat from morning pricing levels today and the 10yr yield declined 1 bp in very subdued trading.

In summary, there were nothing of any significance - headlines or events – or there to motivate the markets.  Currently I would continue to recommend locking if you are closing in the next 15 days.  With the volatility we had after the FOMC meeting last week, movement in the wrong direction can happen at any time, and one might want to just grab these low rates as the risks is a bit much to swallow than the rewards at this time.  With Christmas/New Year’s upon us, today proved what I expect that little if any ground breaking moves during this period.

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 my website at www.CallTheMoneyMan.com. I have access to real time Wall Street data and instant market alerts with breaking news that I monitor throughout the day to assist us on making the informed decision.