AM RATE LOCK & MARKET ADVISORY - October 31, 2011

DAILY MORTGAGE LOCK ADVISORY 

October 31, 2011, 6:30 AM PST

Click for Lock Advice Updated Several Times Daily  

Mortgage Interest Rate lock Advice for locks within 7 days:  FLOAT

Mortgage Points based on 3.5% Mortgage Backed Securities are down 0.40 Point

30 Day Mortgage Interest Rate Lock or Float Advice:  LOCK
October 7, 2011, Mortgage Backed Securities moved below a long standing resistance level which could be bad news for long term rates. 

MORTGAGE MARKET INDICATORS
National Average Fixed Rate Mortgage 4.11%   
MBS (3.5%) - 101.47, High: 101.47, Low: 100.97   
DJI Stocks currently $12,134.16,  Down $-96.95, Change -0.799%   
Asian & European Stock Market Indexes Down -1.301%   
Nymex Crude Oil Currently $91.68 Down $1.64

             
MORTGAGE NEWS BRIEFS

This Week; two things dominate. Wednesday Bernanke will hold a press conference at the conclusion of the two day FOMC meeting, and Friday the October employment report. Interest rates have increased from the 21st of Sept FOMC meeting at which the Fed Started Operation Twist, buying long dated treasuries and MBSs with the intent of keeping long term (mortgage rates) low in an effort to help the housing sector. Bernanke said he expected the Twist would  push the 10 yr note rte down 50 basis points. It worked for one day but at the moment the 10 yr note is 30 basis points higher than the day the Twist was announced. The Fed has to be concerned, there are no real fiscal efforts in place and lower interest rates have had little positive impact. David Shirmeryer - Rate Alert.