Last Week's Mortgage Rates Recap
Last week saw a definitive drop below key technical market support levels, capping off with higher mortgage rates on Friday as the markets responded to the February employment report. Mortgage interest rates ended the week about .125% higher than they started. Remember that this is an industry average, and may vary from lender to lender.
This Week's Mortgage Rates Forecast
Risks Favor: LOCKING ON MARKET IMPROVEMENTS
The technical indicators this week show that Mortgage Backed Securities are oversold, meaning we should see some MBS market recovery. That's a lot of technical jargon to say that rates should rebound a little bit this week, but only a little bit.
This week for consumers who are 2 weeks and further from closing, we will look to lock on market and rate improvement at the first sign that the improvement is stopping. For consumers who are within 7-10 days of closing, locking on any improvements is probably the safest measure because there will be no time to recover lost ground in the case of a deterioration. We will not likely see drastic interest rate movement, but we will probably see pricing fluxuation throughout the week.
BOTTOM LINE: Overall we are seeing mortgage rates trending up on signs of an improved economy and record stock market performance. There will be some windows to maximize mortgage interest rate and rebate pricing this week, if you stay in close contact with your MLO (Mortgage Loan Originator).
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