Mortgage Rates Steady at First, Then Higher Into Afternoon

Mortgage Rates began the day steady to slightly lower on average, though more than a few lenders were actually in worse shape. The average stayed in slightly stronger territory but that may change by the end of the day as losses in the Secondary Mortgage Market are prompting some lenders to recall rate sheets and reprice slightly higher. This won't affect the prevailing interest rate quotes, which now average 4.5%, but it would increase the associated closing costs.

The rest of the week is fairly intense as far as interest rates are concerned. There are several major considerations, particularly for the mortgage-backed-securities (MBS) that most directly affect mortgage rates. Most of the considerations suggest a more cautious approach for MBS investors. This is evident not only in the higher rates, but also in the underperformance compared to Treasuries. In other words, the world's favorite interest rate benchmark 10yr US Treasuries will likely end the day just slightly lower than yesterday in terms of yield, yet mortgage rates for many lenders will be higher.

Of those considerations, the most important are the several major economic reports that will come out over the next three days, including the massively important jobs data on Friday. These reports aren't necessarily negative or positive, but instead stand ready to fill either role depending on how they come out compared to economists' forecasts. There is a glut of data tomorrow morning, and if it's even remotely cohesive in suggesting economic strength, rates could be higher with the first rate sheets of the morning. Weak data, on the other hand, might afford some breathing room between now and Friday, but ultimately the jobs data will decide where rates go.

If you need any assistance in regards to your financing needs, give us a call at 314-744-7806, or visit our website at www.CallTheMoneyMan.com.