Mortgage Rates Outlook for Week of 5/7-5/11/12
Should be an interesting week ahead.
The FNMA bond did in fact just break through the proverbial glass ceiling of late at 104 and closed on Friday at 104.03. While I am happy to see this index hit and pass through the 104 mark I am not completely convinced with its very small level passed this benchmark that there is a solid foundation to call this the next level to build or fall from.
Pricing is fantastic right now and my advice is you have a lot more to loose than you do to gain from floating right now.
If closing a loan within the next 30 days I say LOCK
If not closing for over 30 days you are likely OK to float but watch cautiously as if we open tomorrow with a lot of downward pressure we could see an easy 50 bps sell off while the current administration is going to push to see equities make further gains. While it has not always been this way as of the last several years the DOW and the FNMA bonds almost consistently move in opposite directions.
Do yourself a favor and GO BUY A HOUSE!
Its great inflation protection as well as something that is in the critical 3 for food clothing and shelter.
Combine todays rates with current housing prices and this is possibly the best time in the last 15 years to be in the market!