Pending Home Sales at a 3-year High
According to the Associated Press this morning, the number of signed contracts to buy homes rose in March to the highest level in three years. The kicker is that sales are believed to actually be held back by limited supply. There continues to be proof around every corner that the housing market is well on its way to recovery, helped along by low mortgage interest rates. If you would like to read more about it, here's an array of articles to choose from: http://goo.gl/IBqe0
Last Week's Mortgage Rates Recap
Last week was another week that featured an eerie calm. The funny thing though is that there is plenty of market movement during the day, which means that when a consumer locks in their interest rate they could see as much as a .500% change in pricing rebate on the same interest rate. On a $200k loan amount, that means $1,000 in costs out of the consumer's pocket! So even when things are calm, it is still important to talk with your MLO (Mortgage Loan Originator) and to make sure to stay tuned to the MBS (Mortgage Backed Securities) market.
This Week's Mortgage Rates Forecast
Risks Favor: CAUTIOUSLY FLOATING
Interest rate markets are going to be affected by lots of economic news this week, meaning that volatility is the only sure thing. There is a war between technicals and fundamentals, the two primary functions of forecasting rates, pointing to what will happen this week with mortgage interest rates. Along with the amount of news being released, we may be in for a choppy ride this week.
Any consumers who are less than 7 days out from closing may want to just lock in the great rates we see today. 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.
BOTTOM LINE: While mortgage interest rates are trending stable, that means that we haven't seen much of a change in actual rate over the last week. However, we still have the Volatility Index on 9 because there will be lots of movement of the MBS (Mortgage Backed Securities) market during each day that will affect how much a consumer will pay in closing costs when locking a loan. Consumers should stay in regular contact with their Most Trusted MLO for rate and lock advice this week to protect themselves from market movements that may hurt them.