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For the Real Estate Professional

This site is dedicated to informing the Real Estate Professional. I Blog each Friday, to keep you informed of upcoming changes, statistics, rates and lending news.  There is also links to program brochures on the right, as well as charts and news to keep informed.

Mortgage Rates for the week

Mortgage Rates for this week:  Mr. Toad's Wild Ride!

Last Week's Mortgage Rate Recap

Last week mortgage backed securities (MBS) lost -49  basis points from last Friday's close which caused 30 year fixed rates to move higher.  This ended the bond rally that had lasted for the two weeks prior to last week.

As we have discussed, MBS sell off when there is positive economic news.  We certainly could have sold off even more given last week's data with Durable Goods Orders much stronger than expected (4.2 vs 0.5) and the Consumer Sentiment Index rising from 84.1 to 85.1.  Existing Home Sales missed the market expectations but was still robust.  New Home Sales enjoyed some nice gains in terms of unit sales and price increases.

Demand for our 7 year Treasury auction saw some decent demand but our 5 year and 2 year auctions saw decreased demand.

MBS would have lost more ground (even higher rates for you) if it weren't for a WSJ article that speculated that the Fed would change their language at this week's FOMC meeting to calm the markets that they would not be increasing their rates for a long time.  We agree.  They will certainly leave their Fed Funds rate alone but they will eventually have to start to pull back on bond purchases and those bond purchases are what impacts your mortgage rates...not their Fed Fund rate.





This Week's Mortgage Rates Forecast

Mortgage Rates Currently Trending: HIGHER

Expect much more volatility this week as traders watch the plethora of economic data that is released this week - and all of it with the potential to move the markets.  Week to week now, the common theme seems to be the markets watching to see what the Fed may do about withdrawing/tapering QE3.  Strong news bodes well for the growth of the economy but may hasten the Fed's move out of QE3; weaker news keeps the Fed from tapering but emphasizes the weaknes in the economy.  An ugly catch-22 no matter how you look at it.


BOTTOM LINE:  It's a good time to have an interest rate lock/float conversation with your Mortgage Professional.  Some scenarios make it easy to advise to lock, others make it more of a time to float.  Talk with your Most Trusted Mortgage Professional to decide what options are available and what actions may be right for you.  Whatever you decide, be prepared for a roller coaster week full of volatility.  Be sure to stay tuned to live market data with your Mortgage Professional to stay a step ahead of lender reprices and to cash in on market gains that help mortgage rates. Be prepared for any negative market performance that could push mortgage rates higher.


Posted by 375loan at 7/29/2013 6:51:00 PM


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