Mortgage Rates Flat

Mortgage rates are extremely flat as another unchanged session and that will likely be the situation through Friday morning until Janet Yellen speaks. July new home sales were much better than expectations - still though home sales are well of what we saw for years prior to the financial crisis in 2008. It has been a while since that happened and maybe there are readers out there that were not in the mortgage business then and prior to it. Housing gets high marks in the present economic climate as a major supporter, that clearly shows just how weak the US and global economies are compared to the previous 50yr history. This is the new normal, very slow growth and overall weaker wages. Sure raises are occurring and that is a plus but in my eyes and the eyes of history the economy is anything but robust. Problem for me and those of our ilk the comparison is very disappointing.

Treasury sold $26B of 2yr notes this afternoon - not bad but as expected, not strong with the pall of a rate increase hanging out there now. Tomorrow July existing home sales, along with $34B of 5yr notes will be auctioned.

Three of the four key central banks will meet next month. What will they do? The primary reason markets are locked in a narrow range. It will not last much longer.  The balance usually does not last this long, rates in a flat range and stock indexes equally flat. To push rates lower from here will take a lot of effort and negative outlook. Central banks are not likely to let that occur. 

In summary, bond markets currently holding steady in the current confined range creates a good opportunity to lock and move on. Although I firmly believe we are yet to see the lowest of the lows in mortgage rates, the timing is what matters, and right now locking in makes the most sense. Loans with over 30 days to close can speculate on the potential for lower rates.