Monday, December 1, 2014 - Article by: Bart Castelli - Homestar Financial Corporation NMLS #70864 -
Mortgage rates started off low this morning, but became jumpy amid volatility this afternoon. The most prevalently quoted conforming 30yr fixed rates for top tier borrowers was favoring more with 3.875% but 4.0%was still out there for some borrowers with no fees.
The rate markets have been rallying for the last week and a half, but today it finally ran out of gas with oil increasing. Media sources saying it was the ISM manufacturing index that was slightly better, not likely as much as moving into another consolidation at new low levels. The ISM manufacturing index was though the second best since April 2011 (last month the best). Bloomberg News in another survey of economists saying the 10yr note will go out this year at 2.50% - that is a tall order given the present level of the 10yr and just 5 weeks to go to end the year, and with global economies slowing with absolutely no inflation on the horizon.
In summary, recent improvements in mortgage pricing in the face of impending important economic data this week tends to steer my bias towards locking for now as risk rises. This is especially true for those closing within 15 days. If you choose to float for longer term closings it would be with the understanding that you need to be able to pull the trigger quickly if conditions warrant it
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 my website at www.CallTheMoneyMan.com. I have access to real time Wall Street 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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