Mortgage Rates Moved Slightly Lower

Mortgage rates moved slightly lower today after hitting four months highs yesterday.   We are still seeing 4.25% as the most prevalent quoted conforming 30yr rate for top tier borrowers with additional closing costs and 4.375% still in the picture. 

The day was volatile in the MBS market - opening better then took a dip before returning to gains through the afternoon. The 10yr did the same - opened at 2.60% then ran up to 2.64% before settling this afternoon at 2.59%. The action today was nothing significant - as we have been noting the bond and MBS markets are temporarily oversold and some price improvement was expected. The outlook still bearish but as we have also noted, we do not believe rates are about to run much higher. 2.59% on the 10yr is just 7 bps away from our models to turn bullish.   2.52% on the note rate is very significant, where the 20, 40 and 100 day averages are converging. The oversold momentum is dissipating a little now.

In summary, after a rough couple of weeks, looks like rates may have settled in at current levels.  The big question will the tide turn downward is yet to be seen.  My recommendation would be to continue to float to see if this move can gain some more momentum next week.

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.