Mortgage Rates Steady - Have a Happy Thanksgiving

Mortgage rates fell modestly today, with bond market strength both before and after the release of the Fed Minutes. 

The Markets opened quietly this morning, as the Weekly MBA mortgage applications were high just a bit last week.  Weekly jobless claims -13K to 239K after the prior week was revised higher by 3K, as the report in line with forecasts. October durable goods orders came in lower than anticipated, and even when you look at the internal numbers, it was not a good report.

A little later we had the November U. of Michigan consumer sentiment index which was in line what was forecasted, and then the minutes from the October FOMC meeting.

As the minutes were just released, it is highly unlikely there will be much movement in markets today. Stock indexes rallied yesterday, but the bond and mortgage markets were not affected; that has been the case recently as stocks increased, the long end of the yield curve has remained essentially unchanged. The lack of inflation allowing investors to keep a good hedge in the 10yr note and 30yr bond against the potential of a pullback in equity markets (although a Big decline now appears unlikely).

In summary, this flat line in the bonds will more than likely play itself out till Friday, and we are now at the lower end in the past 30-days.  Even though everyone would like to see rates lower, I am happy with these levels, and would suggest those to see what happens this week and look at next week to consider locking before the end of the year.   We will not get high importance data until Wednesday of next week so I expect to be range bound till then.

Mortgage banks are closed Tomorrow for Thanksgiving.  Friday is technically a half-day for bond markets, but availability of new rates and the ability to lock them varies widely.  I am officiating one of the biggest High School Thanksgiving games in the country here in St. Louis with the 110^th Annual between Kirkwood and Webster Groves here in St. Louis.

Have a Happy Thanksgiving and I will get back with everyone next week.