Mortgage Rates Heading in the Right Direction

Mortgage rates continued to head in the right direction, even though it is doing such in a very slow manner.  The most prevalently quoted conforming 30yr fixed rates for top tier borrowers still is between 3.75% and 3.875% depending on fees and loan size.

We had a very mild trading session today as expected.  There were no economic releases today.  We did have a 3yr Treasury auction with very strong results – which showed stronger demand than the average for the last 10 auctions.  MBS’s did rally a bit on this news, but could not hold onto their gains.  Tomorrow we have our 10yr Treasury auction.  It would be interesting to see where the 10yr ends up after closing at 1.91% today.

In summary, after a pretty nice run, mortgage bonds had a down day.  The losses however were not too bad but more could be on the way especially with it being jobs week.  For the past year, I have been recommending locking at this point, as the report always causes my stomach to turn.  Except for the last two reports, even with positive data we had, the rates always increase on this day.

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.