Wednesday, March 12, 2014 - Article by: Bart Castelli - Homestar Financial Corporation NMLS #70864 -
Mortgage rates are starting a downward slide after what happened last week is now becoming a distant memory. Even though the market has been still volatile, today was more positive after the 10yr Treasury auction results were announced. Treasuries do not directly affect mortgage rates, but they often set the tone for other low risk fixed-income investments such as Mortgage Backed Securities (MBS) - which do directly affect mortgage rates. 4.5% recently took over as the most prevalently quoted conforming 30yr Fixed rate for the best-qualified borrowers, but 4.375% might be on its way.
As far as prospects for that sort of positivity are concerned, we won't have to wait any longer than tomorrow. The morning brings the first substantive dose of economic data this week (Monday through today have been silent) in the form of Retail Sales. This is a relatively important piece of data and along with the other events on tap, could serve to inspire some more genuine movement in rates as opposed to the tentative trends of the past few days. If the data is weaker than expected, rates should improve, but vice versa if it's stronger.
In summary, mortgage rates stabilized on Monday and Tuesday after last week's large sell off. In the short term, I will still recommend to float cautiously, but be ready to lock if your wait is paying dividends.
Everyone's heard of the real estate fluctuations, but it's a great time for buyers. With more homes for sale, prices falling, and rates continuing to drop, you can get an unbelievable buy right now. If you've thought of buying a home and were afraid the best time had passed, let me show you why it's time to move!
But act fast. In today's market, no one knows what the rates will do a month from now. Let's look at our ReserveARate program. Give me a call or visit www.CallTheMoneyMan.com today.
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