Friday, February 28, 2014 - Article by: Bart Castelli - Homestar Financial Corporation NMLS #70864 -
Mortgage rates did not move in the right direction as we had hoped today as theyended the week after moving lower. Following the data from this morning and with the Mortgage Backed Securities already losing ground from the previous gains during the week, this double whammy sent the market in negative direction. For the best-qualified borrowers seeking a conforming 30yr fixed, 4.375% remains today's most-prevalently quoted rate.
We saw some trading based upon actual fundamentals this morning, but unfortunately it did not last. MBS were under pressure early, but had solid support and even rallied in afternoon trading as global concern over escalating rattling in the Ukraine and Russia caused a flight to quality into US Bonds.
In summary, weak morning for MBS today following economic news, but we regained the losses this afternoon. It is not surprising to see markets consolidate at lower levels, and the 10-year Treasury held below a 2.7% yield, which is encouraging. Next Friday's NFP report is the key market event of the week, any movement between now and then is only a precursor to it. We have seen the market bring some positive news to mortgage rates. Some may want to still float, and if you do such, I would use extreme caution, but if you are closing in the next 30 days, the safe bet would be to lock in the gains we have seen and not look back.
Remember, if you want to know the benefits of locking your rate today versus floating, simply give me a call at 314-744-7806 or visit me on my website at www.CallTheMoneyMan.com I have access to real time Wall St. data and instant market alerts with breaking news that I monitor throughout the day to assist us on making the informed decision.
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