Mortgage Rates Forecast: Starting the week NEUTRAL to LOWER, but ending HIGHER
Last
Week's Mortgage Rate Recap
Mortgage Rates Currently Trending:
LOWER
Last week saw rates improve an average of .125
to .250%, because the MBS
(Mortgage Backed Securities) market recovered more than half of the selloff that
we experienced on Friday, November 8th. Many lenders will find rates and rebate
pricing close to what we last saw on Thursday, November 14th, before the MBS
selloff. Especially well received last week was the speech by Janet Yellen in
her confirmation hearing, which led traders to feel more secure that Fed
tapering of bond purchases would be held off until at least 2014. For the week
we gained 70 basis points, but those numbers are skewed by Tuesday's bond
rollover.
This Week's Mortgage Rate Forecast
Mortgage Rates
Forecast: Starting the week NEUTRAL to LOWER, but ending HIGHER
This week is
difficult to forecast, as MBS seem to be riding to the top of the trading
channel we find ourselves in. There may be a small amount of rate improvement
left on the table, maybe another .125% or simply improved rebate pricing (the
credit your lender gives you towards your closing costs), but economic data on
Wednesday and Thursday could see an MBS sell off resulting in rates
worsening.
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. If we
break above the 102.00 resistance level we will see improved mortgage rates.
However if we fail to reach it, or bounce off of it, we will see mortgage rates
inch up for the worse again. Which way we go will depend greatly on Wednesday
and Thursday economic data, so be ready to work with your Mortgage Loan
Professional to react. If you need any assistance with your home mortgage, give us a call at 314-744-7806, or visit us at the link below:
If you need any assistance with your home mortgage, give us a call at 314-744-7806, or visit us at the link below:
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