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Bart Castelli

Mortgage Rates Continue to Climb Higher

Wednesday, September 10, 2014 - Article by: Bart Castelli - Homestar Financial Corporation NMLS #70864 - Message

Mortgage rates continued to move higher at a fairly quick pace today. Some borrowers were quoted the same rates today as yesterday (4.125%) for top tier borrowers, again with the only change coming in the form of closing costs, but 4.25%is now more in play than it has been during the past several weeks.

Not much movement in the bond and mortgage markets through the day after a weak opening this morning. The intraday volatility we were thinking would occur this week has not happened. Markets - all markets - are thinking and planning for the FOMC meeting next week and Yellen's press conference after the policy statement next Wednesday. In the meantime this week has very little economic news until Friday with August retail sales. The equity market are moving back and forth with no major changes. Interest rates are moving higher on a relaxation of those geo-political events in Ukraine and the mid-east.

Treasury sold $21B of 10 yr notes this afternoon,re-opening the 10yr issued last month. The auction rate 2.535%, bid/cover 2.71, the 12 month average. Indirect bidders were stronger than recent auctions because the rate is so much higher than G-7 equivalent rates and higher than Germany's 10yr bund. Indirect bidders took 13.5%, a little less than the last 12 auction average.

Tomorrow weekly jobless claims are not expected to have changed much; the estimate is a decline of 2K to 300K, claims have been very well contained over the last month.

In summary, I would definitely advise locking your rate to avoid any further losses in available lender credits and to protect against higher rates in general.

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 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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