Mortgage Rates & Trends 9/16/2013
Last Week's Mortgage Rate
Recap
As
we forecast in last week's commentary, last week saw rates remain flat, with a
small improvement to rebate pricing as the reflection of a small improvement in
the MBS (Mortgage Backed Securities) market for the week. MBS and interest
rates were less volatile last week than we've recently witnessed, as there
wasn't a lot of positive or negative economic data to break MBS out of their
tight trading channel. Syria is now a non issue to traders after negotiations
have removed the threat of US military action. While it was nice to get a week
without the swings we've become accustomed to, count on it to be short lived as
this week will hold much more volatility.
This Week's Mortgage Rate
Forecast
Mortgage Rates Currently
Trending: NEUTRAL
This week will definitely prove to
be much more volatile as the markets try to stay a step ahead of the news coming
from the Fed. All eyes are watching the reports leading up to Wednesday, when
the Federal Open Market Committee meeting will occur. Although the actual
minutes from the meeting will not be released until October 9th, the markets are
sure to move based on speculation and the post meeting press conference at
2:30pm Eastern by Fed Chairman Ben Bernanke. Also coming into play this week is
the replacement of Bernanke, as talk of potential candidates drives market
movements.
BOTTOM
LINE: The risk of floating loans is high as the FOMC meeting gets
closer. If the Fed announces that they will begin tapering, that will likely
drive mortgage rates up. It is critical this week to work with us at Midwest Mortgage Capital to stay a step ahead of lender reprices and market trends to
protect your mortgage rate.
Be prepared for lots of interest rate volatility this week as the markets work to stay ahead of the Fed moves and speculation abounds. You can contact us either at 314-744-7806, or click on the link below:
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