Last Week's Mortgage Rates Recap
Last week saw interest rates and pricing rebates remain stable for the second week in a row. Surprisingly though we didn't see the intraday volatility that we expected to see. Even though the stock market, along with the prices for gold and oil all were very volatile, that volatility never crossed over into the bond market, specifically the 10yr Treasure note and MBS (Mortgage Backed Securities), the drivers for mortgage interest rates and pricing rebates.
This Week's Mortgage Rates Forecast
Risks Favor: FLOATING
Interest rate markets are driven these days by each move in the key stock indexes; that market has experienced increased volatility but interest rates haven’t shown much change, remaining in their tight ranges. This week 170 of the S&P 500 will report earnings, and Q2 earnings so far have shown a mixed picture; some good, but others not meeting expectations. Expect continued high volatility in the equity markets this week.
So for this week, any consumers who are less than 7 days out from closing may want to just lock in the great rates we see. Anyone more than that should watch the market with their mortgage loan originator and see if we may find even more improvement on the horizon, but be ready to lock if we see things turn sour - one example being the 10 yr note exceeding 1.75% on a closing basis, which would likely see rates edge higher.
BOTTOM LINE: Improvements in rate will come grudgingly, and if we do improve it most likely won't be much; we may improve by about .125% in interest rate. However, if things go the other way, rates will probably edge up higher. This week is an important week to stay on top of the market for indication which way we will break.
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