Mortgage Rates Confused Waiting for Thursday News

Mortgage rates today are going their own way - shorter-term products increasing, longer ones decreasing or unchanging. The folks at Mortgage News Daily stated that "bonds aren't very interested in following any other market in lock-step these days." What we have is a confused market waiting for Thursday, when the most important news comes in.

Where Are Mortgage Rates Going?                     

>>> Rates are improving on the shorter time frames of locks

Bond yields are moving a little lower today, bringing with them mortgage rates. The yield on the 10-year Treasury note, which is the best market indicator of where mortgage rates are going, is down to 2.81%. Mortgage rates typically move in the same direction as the 10-year yield.

Today’s data was mixed and mostly offset each other as we wait for the most important trading day this week, Thursday. What the big surprise came from was the Consumer Confidence Index for March that blew analysts’ predictions out of the water.  The index tracks Americans’ views of current economic conditions and expectations for the next six months, which should predict economic activity and inflation potential.  What came in was a decrease which was excellent news for mortgage rates.

Rate/Float Recommendation           

>>> Take action soon to try and get the best rate

Mortgage rates today are behaving very unpredictably. If you absolutely need to hit a rate that is in your strike zone now, or are very risk-averse, you probably want to lock. If I were floating a rate right now, I would probably chance it that rates will move up and down and try to grab mine when it is down. But this is a very short-term strategy.

In a rising rate environment, the decision to lock or float becomes complicated. Obviously, if you know rates are rising, you want to lock in as soon as possible. However, the longer you lock, the higher your upfront costs. If you are weeks away from closing on your mortgage, that is something to consider. On the flip side, if a higher rate would wipe out your mortgage approval, you would probably want to lock in even if it costs more. If you have not talked to a lender, give me a call or visit my website Call The Money Man.