Monday, November 24, 2014 - Article by: Bart Castelli - Homestar Financial Corporation NMLS #70864 -
Mortgage rates continue to improve - but again (like I have said the last few days) - only affecting the dollars associated with the closing costs if you wanted to buy the lower rates. The most prevalently quoted conforming 30yr fixed rates for top tier borrowers was still at 4.125%, but 4.0% was better than yesterday with lessor fees and 3.875% is coming into the picture as well..
The 10yr dropped to 2.30% this afternoon testing the resistant level. We continue to expect rates will work it lower now - but we are not out of the woods regardless of all the fluff about inflation. The US still has the highest interest rates of most developed countries and carries good faith of the US Government. The ECB and China are in the equation cutting interest rates and about to launch bond buying (the ECB). The US stock market is ripe again for another correction - but I am not sure if it will happen before the year is out prior to Christmas.
In summary, I am again repeating what I said on Friday - a "broken record". We have quite a bit of data in the next few days and then the holiday weekend. I am repeating my stance again - if you like the rate, lock and do not look back. If you float, are the risks more beneficial than the potential rewards? However, maybe the risks are looking like a chance to be taken... just keep a close eye on the markets.
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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