Mortgage Rates "Stuck" - No Change Continues

Mortgage rates are moving sideways so far today… and it seems like I have again stated this in many different formats for the last eight days.  Can you say “Stuck” – as the bond markets have not changed one bit this week, even though there may have been some small fluctuations in regard to the rate that was quoted or locked.  The market continues to experience very little volatility out there from a week that has no economic news and very little political and geo-political news.

The only key data today, May new home sales did not meet the expected target, but with the April revisions that were better than what was originally reported, overall the report was better when your account for the last two months of data together.  Even with this positive news, there was no immediate reaction to the report.

There are three Fed officials out there today, and I am sure they will try to garnish some media attention to the rhetoric they must say about raising rates and the health of the economy.

The Senate working on its version of a health care plan that now is tenuous, four Republican senators in opposition, to get it passed it will take at least two of those to get on board or it ends with thud. Senate majority leader Mitch McConnell wants a vote before the 4th of July to avoid the anticipated protests that will likely occur over the three-day holiday. Ted Cruz, Rand Paul, Mike Lee and Ron Johnson, all members of the party’s conservative faction, had announced they would not cast a vote to support the bill in its current form. Paul, the conservative senator from Kentucky, said: “The current bill does not repeal Obamacare. It does not keep our promises to the American people.” In the meantime, more insurance companies are leaving the states over the present health care act. 

Right now, I will continue to hold off locking any loans unless ready to close.  However, anything is possible, so one must watch if there is some sort of news flash that will disrupt this standstill.  If you want to read an interesting article regarding “Why Mortgage Remain So Low”, look for my next blog in the next few minutes that was well written by the TBWS Group.