Mortgage Rates Had a Great 2014

Mortgage rates headed a little higher today, but nothing to be noticeable with the rates/fees.  All in all, rates had a great year in 2014.  The most prevalently quoted conforming 30yr fixed rates for top tier borrowers was still at 4.00% with no fees, but 3.875% with extra fees did seem to attract again those folks who wanted that number.

Today’s movement did little to change the picture.  At the beginning of the year, I along with many others predicted that rates would increase to a point that we might have been seeing five percent.  Were we ever wrong!  There were a number of issues that changed the final output on rates after the tapering began, and with these factors, even though we have seen signs of good economic data, Europe has played a big role on what is happening with our rates.  The US is still considered a safe haven.

In summary, it appears this New Year will start off much better than 2014 as mortgage rates are at the lowest levels we have seen since the summer of 2013.  Global growth is apparently slowing in many areas indicating lower rates worldwide which could lead to more demand for relatively higher yielding US Treasury securities. So, in the face of an indication by the Fed they will begin to raise rates mid year this should have a dampening effect on the upward movement. But, there are too many volatile and unpredictable scenarios that are possible moving into 2015 which seriously means, "anything can happen". Does it make sense to lock in now some of the best rates we've seen in over a year and a half? Certainly no one could fault you for that.

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.