Mortgage Rates Continue to Fall

Mortgage rates inched a little bit more towards the lowest point for 2014.  It seems like I am repeating myself as the interest rates that are normally influenced by strong economic reports did just the opposite – as the market considerations still is being looked at heavily overseas. The most prevalently-quoted conforming 30yr fixed rate for top tier scenarios is now at 4.125%, with 4.00% now becoming a factor with higher closing costs into the picture. 

As expected, we have had another trading session with a very thin range from our intra-day highs to our intra-day lows.  Weaker than expected Unemployment data out of Germany and another bizarre story out of Ukraine has helped to keep MBS into positive territory despite our strong economic news – which would "normally" cause MBS to sell off - with a better than expected 2nd QTR GDP revision, stronger Pending Home Sales and Initially Weekly Jobless Claims once again coming in below 300K.

In summary, not much to add from my guidance over the last week or so. Short term closings should consider locking on today's improved pricing. Those over 15 days from closing, I would continue to float. Geopolitical drama is building, and Europe is going downhill quick which could lead to more stimuli which would benefit rates here.

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.