Tuesday, January 20, 2015 - Article by: Bart Castelli - Homestar Financial Corporation NMLS #70864 -
Mortgage rates were all over the board today as I mentioned last week that this was going to be a volatile week. The most prevalently quoted conforming 30yr fixed rates for top tier borrowers was still at 3.75%, and 3.625%was still there with its additional fees.
The bond and mortgage markets opened nicely this morning but by late morning prices started a slow drift lower.The 10yr this morning traded at 1.79% down 4 bps from last Friday. US stocks opened better then slowly slipped lower. No important data today, but the December NAHB housing market index hit is target at 57, unchanged.
The macro story for markets is the state of the global economies -most are now realizing that possibly the US growth will be hurt as most economies are slowing substantially in the last year. China's historic growth has slowed substantially over the year, once a GDP growth of 15%, now half the growth at about 7%. The slide down has Chinese government officials searching for a plan to halt the decline. Businesses in China and foreign sales are experiencing declines from the lofty grow years.
In summary, we had a bit of a bounce back in the morning after the MBS went South on Friday before the Holiday weekend, but quickly retreated and was wiping out the gains that were realized earlier by the end of the trading session. My recommendation is that if you have not locked, and you can handle the risks, cautiously float and keep an eye on the market.
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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