Mortgage Rates with the Concerns with Ukrain and China

The concerns over Ukraine and China did not go away overnight.  They may have even been amplified and that means fantastic support for mortgage rates today. This morning's domestic economic data showed no threat of inflation in the near term. The weaker than expected Consumer Sentiment Index is also positive for pricing.  The decline in wholesale prices gives the Fed more ammo to keep interest rates low for longer. A catch 22 - the Fed wants higher inflation but that would encourage the Fed to begin increasing rates.

But today's market is not about domestic data.  It is about Ukraine and they have a very important vote on Saturday.  Will Cremia vote to part of the Russian system?  Regardless of the outcome of the vote...more volatility will ensure.

This double barrel uncertainty (China & Russia) has stepped up market volatility this week and will likely continue next week into the Fed’s meeting conclusion on Wednesday.

Back in early February after the Employment Report, the 10yr was at 2.58%.  This morning the 10yr is at 2.64%.  From a pure technical perspective 2.58% will render strong resistance.  From a fundamental perspective, if the situation with Russia leads to an economic slowing and China’s economy continues to show weakness the rate markets could decline a lot further.  

Keep a strong look at the markets and continue to cautiously float if you do want to take a risk.  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.