Mortgage Rates Higher, Then Retreaded

Mortgage rates went straight north this morning even with the slight miss in the ADP numbers, but then retracted quickly this afternoon when the roadblock was announced that the ECB came out with negative remarks on the Greek debt debacle. A sharp drop in oil prices and foreboding headlines out of Europe helped fuel a flight to the relative safety of bond markets in the afternoon, thus giving lenders room to lower rates. 

This morning markets didn’t look good but oil and Greece turned everything around. Early this morning the MBS price -19, the 10yr at 1.82% and did test 1.84% - the key support. Everything turned quickly this afternoon as the excessive market volatility continues.

In summary, I wondered yesterday if this week's losses signaled a pause in rates improving or a market bottom. Today looked all set to confirm that, but afternoon headlines out of Europe helped rates regain some of their composure.  One thing's for sure - volatility is elevated.  I suggested keeping locked, in hindsight I could have floated. With employment on Friday and the intraday volatility, it is best to keep locked.  If you want to float, do so carefully with your sights on the market.  The risk vs. reward should be considered and current levels are still at some of the best rates we have seen in a very long time.

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.