Friday, January 31, 2014 - Article by: Bart Castelli - Homestar Financial Corporation NMLS #70864 -
We are seeing a big turn of events in the market today as we close out the month. If we can see the Mortgage Back Securities (MBS) continue to improve as what has happened so far this morning, we will see the rates being published by the bank slightly better than yesterday, and even those who were staying fast to their rates of 4.5% may now bring it down to more prevalent levels on ideal scenarios.
Today it is important to monitor the market through the day and see if this improvement can be sustained as early trading indicates. If the Mortgage Back Securities (MBS) does stay positive, we will be in a new trading range, leaving room for more rate improvements - albeit small improvements. Remember what I have been talking about the volatility of the market and the correlation between the Bond Market and the Mortgage back Securities (MBS). Because of this, the Bond Market is benefiting from poor performance and volatility in the stock market and emerging markets. If that stops, it is likely that the improvements we are enjoying, this movement in mortgage rates will stop as it seems everything as of late has been tied to these two factors.
Remember that we will not see the extremely low rates seen in the past, and improvements we do see may very well be short lived. Longer term forecasts for rates this year are that rates WILL go up, and we should be ready to act on these pockets of improved rates.
It is always best to work with our team as we monitor the market in real time and stay ahead of any reversals and lender's increasing rates. Give us a call at 314-744-7806, or visit our website www.CallTheMoneyMan.com.
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