Tag Archives: mortgage rates

Should I Lock or Float? This Week- November 18, 2013

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November_18th_2013_Mortgage_MarketThe Non-Farm Payroll numbers came in on the 8th of this month, well above expectations with 204K versus an estimate of 125K new jobs. In addition, revisions added 60,000 more jobs to the prior two month
releases and thus mortgage rates took a significant one-day beating – noted by the long red column shown on the far right of this graph. Prices are now almost back where they were before that report was announced.

For those of you shopping for a good mortgage rate, who did not lock at the time, may have just gotten your reprieve!

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Should I Lock or Float? This Week- August 19, 2013

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Mortgage Rates Monday the 19th, 2013The market has opened this morning right where it left off last week. It continues to deteriorate. But, first let’s recap what happened last week. Looking at the graph to your right, the last 5 out of 6 trading days got worse for mortgage rates – note the “red escalator” on the far right of the chart. In addition, last week wasn’t kind to stock market investors as well.

Here is a review of the major events of the week: Continue reading →

Should I Lock or Float? This Week- August 5, 2013

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Todays_market_8-6-2013When the U.S. economy hit rock bottom a few years ago we called it the Great Recession, and saw the mortgage banking industry come to a screeching halt. A thankful by-product, after the dust settled – we were treated to some of the lowest interest rates in our lifetime. Those historically low rates may have run their course as the past week brought encouraging economic news from several sources, and with that, rates are rising.

For my clients of late, I have been in a “locking” mood, and based on the technical’s – I am not changing my mind anytime soon. As you can see from the graph on your right, Mortgage Backed Securities (MBS) have traded below a ceiling of resistance going on 10 days now. The economic news this week shouldn’t have enough push, to get above that ceiling. Continue reading →

Should I Lock or Float? This Week – July 22, 2013

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Mortgage Rates Trending

Mortgage Rates Trending

It’s been 3 weeks since Sacramento mortgage rates hit their highest point of 2013. Since that Friday, July 5th, we have seen a welcome rebound. I stress, the words, for now. Last Monday, retail sales came in weaker than expected – as you know, weak economic news translates to lower mortgage rates, for the most part.

Weekly jobless claims fell, and Fed Chair Ben Bernanke testified before the Senate, saying that falling gold prices were an indication of increasing confidence in the economy, but that it was “way too soon” to say when the Fed’s quantitative easing program would be reduced. Continue reading →

Should I Lock or Float? FED Minutes Reveal Rates Should Climb Before Years End

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Federal Reserve to Meet this weekFOMC Minutes Suggest QE Tapering by Year-End

Ben Bernanke, Fed Chairman, blew up the bond and mortgage markets a month ago with his comments that the Fed is preparing to begin reducing the monthly purchases of treasuries and mortgage-backed securities. Rates spiked, and left folks shopping for mortgages, shaking their heads. The minutes for June’s meeting of the Federal Open Market Committee (FOMC) suggest that committee members are mostly in agreement that the current quantitative easing program (QE) should begin winding down by year-end, but the committee minutes are very clear about the committee’s intention to monitor inflation and ongoing economic and financial developments before taking action to reduce the current rate of QE. Continue reading →