Mortgage Rates Holding Steady

Mortgage Rates did threaten to move lower as the Mortgage Backed Securities (MBS) rallied a little bit following the release of the two economic reports this morning.  Even though the two reports were off expectations, the results were negated by the traders due to the impact of the weather has had on the economy.   The most prevalently quoted conforming 30yr fixed rate for the very best borrower scenarios remains at 4.5%, but 4.375% seems to be back in the picture.

Yesterday, we discussed a shift in momentum for mortgage rates heading into Spring, and that today was to be a crucial determination on which way the roller coaster was to go.  The lower results did give us a reprieve.  If the reports were stronger, we would have seen a more challenging expectation that the mortgage rates would have leaped higher.  Instead, even though the “weather” does take some blame in the results, at least we can say that the mortgage rates will not move as fast as they did last year after the correction in September.  Another thought that can be stated is that some may want to argue that this may push us back to the floor as we had seen last week. 

In summary, Mortgage Backed Securities (MBS) helped solidify the mortgage rates after the last few rough days we have seen on the market.  We might see better gains tomorrow, but do anticipate that  banks will hold back going into the three day weekend. Tomorrow's most important report is the Consumer Sentiment report and most lenders will release initial rate sheets before that report hits the wires. If consumers are more optimistic, mortgage rates should worsen, if they are less optimistic, mortgage rates should improve.  However, if the last two months' poor jobs reports weren't enough to convince the market it's facing economic headwinds, not sure what will. For now, one could cautiously float – but locking early still seems like the smart move.

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