Friday, January 24, 2014 - Article by: Bart Castelli - Homestar Financial Corporation NMLS #70864 -
I cannot believe what I am about to say, but with yesterday's improvements combined with another strong showing this morning may be enough for some lenders to improve rates by .125%. However, that being said, I still anticipate that the rates will remain the same as they have been now for about a week. The only thing that might be of a benefit to borrowers that their could be some rebate pricing (the cost to obtain a rate or the credit the lender gives you towards your closing costs when selecting a rate).
As I write this, the Mortgage-Backed Securities (MBS) market has already started off extremely strong for the second consecutive day, and has broken the 100 day moving average - which has been the threshold of resistance that has made rates stagnant as they have been this week. If this trend continues, this will be beneficial for rates. But as I have stated before, it all depends where the roller coaster stops at the end of the day as we have not been able to ssutain breaking this barrier when the day ends. The recent past performance has shown that we have ended the day at or below that 100 day moving average. As we are at this fork in the road, the other factor is the speculation of the FOCM (Fed's) Announcement next week with more Fed tapering of bond purchases, including MBS.
Our advice is to monitor it closely with your Mortgage Loan Professional to stay ahead of market worsening and lenders repricing rates for the worse. If you have any questions with your financing, please give me a call at 314-744-7806, or visit me at www.CallTheMoneyMan.com.
Didn't find the answer you wanted? Ask one of your own.