Mortgage Rates Moved Slightly Lower
Mortgage
rates moved slightly lower today as
we now have the low point in the past 18 months – except for one day on October
15th which lasted only for a short time in the morning that
day. The most prevalently quoted conforming 30yr
fixed rates for top tier borrowers was somewhere between 3.875% and 4.000%, depending
on what fees made the most sense with each rate.
Crude oil fell another $3.00 today taking the stock market down and adding more support in the interest rate markets. As long as crude slides lower there is no motivation for investors to buy equities now. The decline in energy is driving most other commodities lower and fuels the debate about deflation in Europe and other economies. Yes, this may drop gasoline prices and help consumers – however, the lack of demand will be on a global basis. Mix in that price declines are deflationary, every central bank is trying and failing to get inflation higher. The Fed is worried no matter how much money they print has not filtered into a minor increase in inflation levels and are keeping the economies from growing.
Treasury auction was solid today which helped the rate markets. There was no noticeable reaction to the good auction initially, but as the stock indexes fell, the 10yr improved taking MBS with it. We are now at 2.16% on the 10yr note. Another round with 30yr notes goes off tomorrow.
In summary, mortgage bonds found their footing after a strong Treasury auction. Given the steep sell off in equities, it would have been nice to see a stronger rally in the Mortgage Backed Securities. This either indicates traders are tired and future gains could be minimal – or traders are waiting for more confirmation before the next push higher in prices and lower in rates. We shall see what plays out tomorrow after the 30yr treasury auction. A lot could happen so be alert.
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.
Crude oil fell another $3.00 today taking the stock market down and adding more support in the interest rate markets. As long as crude slides lower there is no motivation for investors to buy equities now. The decline in energy is driving most other commodities lower and fuels the debate about deflation in Europe and other economies. Yes, this may drop gasoline prices and help consumers – however, the lack of demand will be on a global basis. Mix in that price declines are deflationary, every central bank is trying and failing to get inflation higher. The Fed is worried no matter how much money they print has not filtered into a minor increase in inflation levels and are keeping the economies from growing.
Treasury auction was solid today which helped the rate markets. There was no noticeable reaction to the good auction initially, but as the stock indexes fell, the 10yr improved taking MBS with it. We are now at 2.16% on the 10yr note. Another round with 30yr notes goes off tomorrow.
In summary, mortgage bonds found their footing after a strong Treasury auction. Given the steep sell off in equities, it would have been nice to see a stronger rally in the Mortgage Backed Securities. This either indicates traders are tired and future gains could be minimal – or traders are waiting for more confirmation before the next push higher in prices and lower in rates. We shall see what plays out tomorrow after the 30yr treasury auction. A lot could happen so be alert.
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.
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