Mortgage Rates & Trends - 10/21/2013

Last Week's Mortgage Rate Recap

Mortgage Rates Currently Trending: LOWER

Last week saw rates improve an average of .250%, depending on the lender, as MBS (Mortgage Backed Securities) pricing improved on news of the government shutdown being lifted and the debt crisis being averted.  They did run out of steam however as they approached the 102.00 Resistance Level, meaning that our march to lower rates may have run out of steam.  We have been trading within the same very tight trading channel since the Fed announcement not to taper on September 18th.

This Week's Mortgage Rate Forecast

Mortgage Rates Forecast: NEUTRAL, but high threat of volatility

This week we will be dealing with MBS pressing up against the 102.00 Resistance Level, as well as the release of economic data that was not released due to the government shutdown.  There is no reason for us to see a large increase in rates, but we may see an increase of .125% to .250% this week if the 102.00 Resistance Level holds.  However, if we can convincingly break above this level, we may find better interest rates on the other side.

BOTTOM LINE: There is risk to floating right now, but also potential reward. The best course of action is to stay in contact with your Mortgage Loan Professional to watch the market in real time to stay a step ahead of lender reprices and market trends to protect your mortgage rate.

 

 

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