Mortgage Rates Continue to Bounce Back

Mortgage rates continued to bounce back as it continues to erase the abrupt increases seen last week.  The most prevalently quoted conforming 30yr fixed rates for top tier borrowers  was still at 4.00%, but again, some folks still wanted the lower rate and opted for 3.875% with extra fees. 

Quiet today but the bond and mortgage markets were boosted slightly on the Greek election failure and after opening higher this morning - crude fell to another new low. A parliamentary vote to elect a president in Greece failed on Monday, hitting stock markets in Europe’s most precarious countries and setting off worries that new Greek political upheaval could reignite a long-simmering debt crisis. The vote means Greece will hold national elections in late January. The US stock market essentially unchanged today, ignoring the Greek issue. Oil futures set fresh five-year lows Monday for intraday trading on expectations that a global glut of crude could keep growing. There were no US economic reports today.

In summary, rates dropped slightly today, as more EU Drama arose in Greece. It's pretty clear that the EU still faces the same issues it has, and that bodes well for US bonds, including MBS. Our long term rate trend still slopes down, and those with some time and risk tolerance may want to consider floating until they near closing. If your loan pricing and/or debt ratios are tight, and your loan works at present rates, nothing wrong with buttoning it up and removing all risk as well.

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 my website at www.CallTheMoneyMan.com. I have access to real time Wall Street data and instant market alerts with breaking news that I monitor throughout the day to assist us on making the informed decision.