Mortgage Rates Fell Modestly Today

Mortgage rates fell modestly today, keeping rates near the lower end of the range since the middle of January.  If you recall from my previous reports, it seems that we have been moving up and down in our narrow range – thus only affecting the fees being charged per day on the current rates.  Simply put, we are at the lower end of the recently higher range.  Combine that with the potential volatility this week from several important economic reports and there's a good case to be made for "playing it safe" with respect to locking vs floating.

The stock market succumbed today, after the DJIA (just 30 stocks) was celebrated last week and there was no additional follow-through investors taking a pause although we doubt it will last too long. I still keep on saying that the equity markets have gotten far ahead of the reality - that is thought to be coming with higher wages, lower taxes, less regulations and that evasive fiscal spending. More focus should be on the S&P 500 index than the DJIA.  

Trump set off another controversy over the weekend with his immigration ban - shock is the best way to describe it. The repercussions have been deep and wide with most opposing his actions - hard to find any agreeing other than his staff. Too much, too fast and without much concern about the momentary difficulties he caused. 

Today another executive order, that will seek to dramatically pare back federal regulations by requiring agencies to cut two existing regulations for every new rule introduced. "There will be regulation, there will be control, but it will be normalized control," Trump commented.

The US and the world are confused, frightened and bewildered over Trump.  Never have we had a President like this one. But he is doing what he said he would do, and now it is not so easy to swallow.

The Atlanta GDP, the first look at Q1 2017 was not significant.  Tomorrow FOMC meeting begins. Q4 employment cost index, January Chicago purchasing managers index, and January consumer confidence index comes out.  Right now if you are floating, do so with caution and do not get greedy.

In summary, today was the best day of the last three days for rates.  I was hoping to revisit sub 2.45% today but it is not in the cards.  If you want to float then you need to hope we break below 2.45 soon or I fear we will be moving back toward the higher end of the range.   Jobs week always has me on the defense, especially considering the amount of data we have on tap.  If you plan to float, then you are also hoping for the data to come in weaker than expected or that stocks will continue to move lower based on all the recent politics coming out of D.C.