Mortgage Rates & Trends 9/30/2013

 

Last Week's Mortgage Rate Recap

Mortgage Rates Currently Trending: NEUTRAL

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 the focus on Washington D.C. kept traders in bonds.  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 Forecast: HIGHER

This week will definitely prove to be much more volatile as things play out in Washington D.C..  Right now the technical indicators show that MBS (Mortgage Backed Securities) should be deteriorating, but the uncertainty of the pending government shutdown is currently propping up mortgage rates.  Expect that once news breaks that the shutdown is averted or lifted if it occurs mortgage rates will go up.

BOTTOM LINE: There is risk to floating right now, but also potential reward.  If the shutdown does occur, it could continue to push mortgage rates lower, but not much lower.  However, once news breaks that a shutdown is no longer an issue, be prepared to act quickly.  It is critical this week to work with your Mortgage Loan Professional to stay a step ahead of lender reprices and market trends to protect your mortgage rate.

 

If you need assistance, do not hesitate on giving me a call or any member of the team at 314-744-7806.  Check us out on the website by clicking on the link below:

Call The Money Man