FOUR is not a 4 letter word
With rates inching up by the day, it's easy to forget that we have spent years and years with rates well above 4%. Here's a graph from FRED, the Federal Reserve Economic Data, showing where rates have been over the last 30 years. The point is that now is not the time to panic, it's just the time to get busy. Don't get caught up chasing yesterday's rates, they are not likely to return. Instead, focus on what they can afford NOW, and don't let more time slip away.
Last Week's Mortgage Rates Recap
Last week mortgage rates found themselves staring 4% in the eye for the first time in many months. For the second week in a row the MBS (Mortgage Backed Securites) market had a day with huge losses leading to intraday price changes. We ended the week slightly above the Support level of 101.30 and we were hoping to see things improve a bit. Different lenders saw rates move differently depending on many different variables, highlighting that the only thing that remains constant is volatility.
This Week's Mortgage Rates Forecast
Mortgage Rates Currently Trending: HIGHER
This week started out with a huge selloff in the bond market, affecting both the 10yr Treasury and MBS (Mortgage Backed Securities). Rates changed two and even three times during the day on Tuesday, depending on the lender. The action was driven by both strong economic news here at home as well as indications from overseas banks that they would continue their own Quantitative Easing if necessary.
BOTTOM LINE: While we may see short limited opportunities to improve on rate or rebate pricing by monitoring the live market, the overall trend is still that rates will continue to climb. Consumers who have seen their expected interest rates jump need to realize that the market is not showing any reason to see those lower rates come back any time soon; it's better to lock in than to chase rates. Be sure to discuss your rate goals with your MLO (Mortgage Loan Originator), and we suggest keeping in contact with your MLO who is connected to the market with a live feed to protect your mortgage interest rates this week.
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