Mortgage Rates at 30-Day Lows

Mortgage rates have moved to its lowest point in over a month - courtesy of weak economic data at home and abroad, as well as the end of this week's Treasury auctions. Today's improvements further solidify 4.125% as the rate more than like to be quoted for a conforming 30yr fixed rate for flawless scenarios.  4.25% remains a competitive rate for many other scenarios.  Borrowers who were quoted the same rates today and yesterday would see the improvements in the form of lower closing costs.

There was some volatility today as economic data from Europe has for the moment replaced the geo-political events as the driver to lower interest rates.  The issues in Ukraine, Israel and Iraq are still there but all three have been uneventful for markets over the last few days.

The 10yr note rate fell to 2.39%  this morning on the weakness in Europe, at mid-day the 10yr yield increased to 2.43% then on the very strong 30yr bond auction at 1:00 rates reversed again with the 10yr holding at 2.40% and MBS prices about where they traded this morning. 

The 10yr note is closing at its best level of the year at 2.40%. Everything points to lower rates ahead. The markets though are subject to high levels of interday and intraday volatility.

In summary, there really has been little change to the market day to day this week, and because of that my belief remains the same. Locking is still the most prudent option. Until there is an obvious move lower, through the bottom of this long term range, rates still remain at the greatest risk of moving higher. 

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.