Mortgage Rates Unchange

Mortgage rates as expected saw little or no change today.  Despite moving lower on 4 out of the past 6 days, rates were never able to put meaningful distance between themselves and the highest levels in more than 4 months.  Too much uncertainty out in front of the rate markets presently. Q3 GDP on Friday, the FOMC meeting next week (no rate increase, but the power of the statement toward December is key), the election in two weeks. All of that is likely to keep mortgage rates generally unchanged in the near term.

This afternoon Treasury auctioned $26B of 2yr notes resulted I a weak auction ahead of the FOMC next week. Tomorrow Sept new home sales at 9:00AM.  Prior to this, we will have the Weekly MBA mortgage applications and September trade deficit.

Obama Care insurance is expected to increase 25% in 2017.  You cannot build an economy on the back of health insurance. Consumers spending very high percentages of their net income to keep coverage with extremely high deductibles. Obama Care was doomed the day it was signed. Older people buying, healthy young people not. Insurance companies abandoning it in droves.  

Over two weeks, no change in interest rates.  That will likely continue through the rest of this week and into the FOMC meeting next week. Lots of uncertainty surrounding the election in two weeks, Clinton the likely winner but the margin will have an impact. Stocks in earnings season with most reporting better earnings than forecasts. Both the equity and bond markets currently trapped in narrow ranges. In a wider look, the tight ranges won’t last much longer for the equity market and in turn will have a direct impact on interest rates. No safety moves into treasuries now and with the dollar stronger it lessens foreign demand.  

In summary, rates continue to be range bound, and I do not see anything that is going to change that in the immediate future. I would encourage clients to lock in if they are within 30 days of closing and would strongly encourage those within 15 days. 15 day rate locks do offer slightly better terms, so if you float overnight and lock tomorrow on 15 days, I would take that risk.