Last Week’s Mortgage Rate Recap
Mortgage Rates Currently Trending: SLIGHTLY HIGHER
Last week saw rates worsen slightly, with the MBS (mortgage-backed securities) market ending the week -82 basis points worse than we started. By far, the biggest event that impacted mortgage rates was new Federal Reserve Chair Janet Yellen’s first time up in front of the House Financial Services Committee. Her prepared statement was released ahead of her testimony. As a result, MBS sold off as her statement made it clear that she would support the “continuality” of the Fed’s programs and direction. Keep in mind that she was a major contributor to many (if not all) of the Fed’s decisions under Bernanke as she was Vice Chair and a major player. She was never listed on the rolls as a dissenting vote and the markets misconception that she would be more “dovish” (to bonds anyway) has proven to be wrong.
This Week’s Mortgage Rate Forecast
Mortgage Rates Forecast: NEUTRAL
This week the market finds itself in a pattern that is neither bullish nor bearish. The best thing to do this week is stay closely tuned to the market in real time to watch for a change to either position.
BOTTOM LINE: You should talk to your Mortgage Loan Professional this week to weigh the possible benefits of floating your interest rate or locking in, based on your unique scenario. If you have time before you are closing a loan, don’t let the volatility this week scare you as we will likely end the week within the very tight trading range that we find ourselves in, meaning mortgage rates won’t really move one way or the other as part of a larger trend.
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This commentary has been provided to you by the Mortgage Loan Originator (MLO) above because they thought you may find it interesting or helpful. The views and opinions offered do not necessarily represent the views of Christian Durland. Please contact Christian with any questions or to find out more about the information listed herein and how to work with Christian