Mortgage Rates Holding Steady After Last Week's Bomb

Mortgage rates have held steady after last week’s bomb that has elevated rates to two-month highs. Today's rates of 4.5% remains the most prevalently quoted conforming 30yr Fixed rate for the best-qualified borrowers.

With little news today the financial markets traded quietly. The 10yr held again at 2.80%, a key psychological and technical level as we noted this morning.  Mortgage Backed Securities (MBS) did improve throughout the day.  The stock market declined following declines in emerging-market equities and commodities, as a slowdown in China’s exports fueled concern the world’s second-largest economy is moderating.  China’s exports dropped the most since 2009 in February.  China’s first onshore bond default last week underscored growing credit risks.

In terms of scheduled events that could have an effect on rates, this week begins slowly and remains slow until Thursday morning.  That doesn't mean that financial markets won't see enough volatility to push rates higher or lower - simply that such volatility would not immediately follow an important scheduled event as it did on Friday.  It is positive to see a slow day today after last week’s data release, but it is too soon to rule based on one day of holding ground.

In summary, the lack of continued selling from Friday and the better than expected NFP report is a positive, without a doubt. I still believe the trend is toward higher rates, overall, but we may get some slight improvement this week considering last week was the worst in nearly a year. Be cautious but if you have the stomach for it, cautiously float and be ready to lock.

Remember, if you want to know the benefits of locking your rate today versus floating, simply give me a call at 314-744-7806 or visit me on my website at www.CallTheMoneyMan.com I have access to real time Wall St. data and instant market alerts with breaking news that I monitor throughout the day to assist us on making the informed decision.