Mortgage Rates Fall a Little

Mortgage Rates fell a little bit today, but only so much to change the fees on the rates that were quoted yesterday.  As small as it was, it certainly was a welcome relieve to what we saw the past few days.  Unfortunately, we cannot assume that it marks a change in the broader trend.  Too big a move in too short of time usually gives back some - technically attempting to find where any new resistance level resides. Nothing has changed however, interest rates are expected to continue moving higher but how and when data remains dependent. Tomorrow and Friday a big basket of key economic reports will be released.

With interest rates expected to increase now the re-finance business is going to slow. If the forecasts for higher rates is correct purchases may improve for a while. Presently the uncertainty about the equity markets, the thoughts of higher rates, the idea the Fed will move in December, the currency markets uncertainty and the on again off again worries about inflation  are all being re-thought after months of complacency. Between now and next Wednesday those uncertainties will be difficult to digest. Even after the FOMC and Yellen and the BofJ decisions it is unlikely clarity and consensus will emerge. 

In summary, tomorrow is a big day with a number of reports coming out. The bottom line, if the data is stronger than expected, the move toward higher rates could easily continue.  Floating your rate is a crap-shoot with bigger-than-normal consequences at the moment.