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Bart Castelli

Mortgage Rates Moving Higher

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

Mortgage rates are moving higher but not as much as yesterday. Even though the roller coaster ride today was a bit bumpy, the most prevalently quoted conforming 30yr fixed rates for top tier borrowers came back to 4.0%.

Even though the movement was small, it was there as expected. The November employment on Friday is all we are looking at now. It is the same we do every month, markets adjust and wait. The report based on estimates will be supportive toward economic growth; these days it is difficult to find anything, no matter how weak, that isn't considered good for equities. The 10 yr note ran back to its previous resistance at 2.30% which now becomes support. Crude oil markets have settled a little after the previous month of continual declines in prices. The Saudis OPEC's biggest oil producer believe oil prices could stabilize at around $60 a barrel, an indication it isn't likely to push for supply cuts soon.

Tomorrow might be another flat but volatile day with the only data being jobless claims.

In summary, volatility continued again today. Mortgage rates seem to be in a tight range waiting for some sort of direction. We might get that push in the next two days with the ECB Rate decision tomorrow and the Jobs Report on Friday. This scenario tends to influence my bias towards locking, even if we are 30 days away. If it is longer, it really depends on your risk level.

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 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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