Mortgage Rates Holding Steady

Mortgage rates stayed about the same following the volatility of last Friday’s jobs report data.  For the most part, the most prevalent conforming 30yr fixed rate for top tier borrowers has been incessantly glued to 4.125%.  Slightly-less-than-flawless scenarios are still very well priced at 4.25%.

The bond and MBS rallies that began on the 1st of August (technically) have run its course for now. The 10yr note closed above its critical support on Friday, started better this morning but this afternoon succumbed to selling and now confirms the break of key support; the rate hit 2.48% at mid-day. 

Technicals on the 10 and other sectors of the bond market are now bearish.  We must respect the change regardless of the many and various opinions. Still little overall consensus from economists, the Fed, the ECB, the Bank of China, the bank of Japan, or the NY taxi driver.

In summary, the benchmark 10yr note is almost at a 1 month highs today and continued weakness will confirm this bearish trend. If you can tolerate the risk, and the potential for a higher rate and payment, I would continue to float in hopes we bounce lower tomorrow. If you are border line on approval at current rates, or just want to remove all risk, then locking should be the way you go

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.