Mortgage Rates Are on the Increase

Mortgage Rates are on the increase as we have seen them escalate in the past few days faster than when they came down to the low levels seen at the beginning of last week. Is this going to be the trend?  There is no guarantee that they might retreat, but certainly does show that the market wants to shift these rates higher.   While the most prevalently quoted conforming 30yr fixed rate for the ”very best” borrower scenarios remains at 4.375%, 4.5% seems to be the market on where the rates have shifted. 

Remember when I talked about the roller coaster rides back in September – well here we go again.  WE had this same type of rally back then after we saw the spike in mortgage rates last summer.  This recent rally was just about equal to the length and timing of that correction then. 

Yellen is scheduled to talk again tomorrow, and the next move is up in the air.  After what we have seen the past few days, the thought process is to gather that the rates are going to move forward (and upward) as predicted.  Tomorrow is crucial in confirming or rejecting that momentum. Some reprieve is not out of the question, but that's heavily dependent on the tone of the meeting and any data that comes forth. Whatever the case, the floor is now well beneath us as the movement begins its climb upward.

In summary, we have had a rough couple days for mortgage rates. Tomorrow, we do finally get some data that has the potential to move the markets with the release of weekly jobless claims and retail sales. If claims and retail sales come in worse, we could see rates settle down back to 4.375% - but pessimists will argue any weakness on winter weather which will lessen any improvements we might get. Pigs get fat and hogs get slaughtered?  Floating to gain a little is too much of a risk as I have been favoring locking now if you are within 30 days of closing.

If there are any questions you may have in regards to your financing needs, please give me a call at 314-744-7806, or visit my website at www.CallTheMoneyMan.com.