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Bart Castelli

Mortgage Rates Up A Little Despite Strong Job Report

Friday, October 3, 2014 - Article by: Bart Castelli - Homestar Financial Corporation NMLS #70864 - Message

Mortgage rates moved a little bit higher today, but was surprisingly better than what was anticipated after a strong job report this morning. We are still seeing 4.125% as the most prevalent quoted conforming 30yr rate for top tier borrowers with additional closing costs with 4.25% still in the picture.

Kind of interesting today that there was very little selling at the long end of the curve. Most in the 5yr note as yield curve flattening continues on increasing belief that the Fed will increase rates next year---which by the way is not that far off now. The Hong Kong event is still alive and well, maybe the bond market held because it is a weekend. Maybe though the bond market is more in touch with the economy than the equity markets. The bond market has much less emotion attached to its movement while the equity market lives on emotion. Regardless of why, the bond market is still holding bullish outlooks - slim, but nevertheless the 10yr held its support today at 2.50% and only up 1 basis point in yield.

In summary, after a pretty solid job report, it is becoming more clear that the bond market does not care about economic data. MBS are only down a few ticks from yesterday, but the pricing I am seeing is much worse. I would recommend floating all loans over the weekend.

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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