Mortgage Rates Forecast: NEUTRAL, but High Threat of Volatility

Last Week's Mortgage Rate Recap

Mortgage Rates Currently Trending: HIGHER

Last week saw rates deteriorate an average of .250%, depending on the lender, as we saw MBS (Mortgage Backed Securities) pricing deteriorate for the second straight week. This time, we saw the largest sell offs from economic news that led the markets to believe that the economy was improving. Leading that news was Tuesday's ISM Non Manufacturing number and Friday's Nonfarm Payrolls number. Both economic data releases led to massive MBS sell offs, causing rates to go higher. For the week, we were down -122 basis points, dropping us down to the next level of support.

 

This Week's Mortgage Rate Forecast

Mortgage Rates Forecast: NEUTRAL to HIGHER

This week is likely to see continued MBS selling and continued interest rate deterioration. If rates remain flat, we will likely see rebate pricing worsen instead. Not much fundamental or technical news on the horizon to turn things around, at least not for this week.

BOTTOM LINE: You should talk to your Mortgage Loan Professional this week to weigh the possible benefits of floating your interest rate or locking in, based on your unique scenario.