Mortgage Rates Jumped Today

Mortgage rates jumped today giving back the improvement we saw from Friday’s rally.  The most prevalently-quoted conforming 30yr fixed rate for top tier scenarios was pushed solid to 4.125%,   but depending on various fees 4.00% still can be done.

There was no data today as the stock market continues to march higher while the bond and mortgage markets did not fare well today. The 10yr this morning about 6:00 am traded down to 2.72% -4 bps from Friday’s close but from there until now the yield increased to 2.36% +5 bps. MBS prices very early on the 8:00 am open were +15 bps but by 9:30 down 8 bps and by 11:00 down 28 bps. The 10yr cannot hold below resistance at 2.30%.This afternoon’s auction of 3yr Treasury notes was weak. 

With no significant new, many traders took the day off with markets being closed tomorrow for Veteran’s day. Tensions are mounting in Ukraine after separatists held Nov. 2 elections that the government in Kiev and its U.S. and European allies said threatened a Sept. 5 truce.  Ukraine has accused Russia of moving troops, tanks and military vehicles into rebel-held areas in its eastern Donetsk and Luhansk regions last week to continue destabilizing the country and to thwart its ambition of deepening ties with the EU.  It is heating up again but so far the fear factor is not increasing; markets used to it by now.  The US saying more Russian sanctions will occur if Russia continues to arm separatists in Eastern Ukraine.

In summary, with bond markets closed tomorrow, you either lock today or float until Wednesday. MBS have given back about half the gains from Friday, but keep in mind it is happening during very low volume. With tomorrow being a holiday, many investors are absent today. All that said, I think floating is the way to go. The only loans I would consider locking today would be those closing within the next 2 weeks.

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.