Mortgage Rates Ends the Week Where It Started

Another week has come and gone. Mortgage rates did not move much today.  Lenders that made detectable adjustments generally did so in a moderately positive direction.  While this is not remotely enough to make a difference in the actual NOTE rate on a mortgage quote, it could make for “very small adjustment” to lower upfront costs. 

In terms of economic data, there were the two key reports I mentioned this morning.  The 1st revision of Q1 GDP was slightly stronger than expected, rising to 1.2% from 0.7% previously.  A separate report, Durable Goods Orders, was also stronger than expected, but contained some internal components that offset the apparent strength. 

The release of Trump’s economic plan played into the biggest rise for rates (which took place late Tuesday into Wednesday), however, it was not a sustained rally and we ended the day basically where we started on Monday.

All told, the data this week had very little effect on the bond market movement.  That's likely to change next week, thus raising the stakes for anyone floating instead of locking.  There are good arguments for both approaches.  Whatever you decide, just make sure to have a plan in place with your originator.

In summary, I like that we are holding under 2.25% on a holiday shortened trading day.  These can be weakness for no reason days so this is a good sign.  Markets are closed Monday so floating means we will not have access to rates until Tuesday.  Some amount of additional caution is recommended but I remain optimistic.  Markets are closed Monday so see you Tuesday.

HAVE A HAPPY MEMORIAL DAY – AND REMEMBER TOSE WHO ARE ACTIVELY SERVING OR THOSE WHO HAVE SERVED, WE THANK YOU FOR YOUR SERVICE!

…AND TO MY SON – I AM A PROUD NAVY DAD