Wednesday, May 6, 2015 - Article by: Bart Castelli - Homestar Financial Corporation NMLS #70864 -
Mortgage rates have not been friendly in the past week as we have seen that after nearly 30 days of no movement whatsoever, we have seen that in four out of the past six days have seen uncommonly big moves higher. These are the sorts of moves that we normally only see 2-3 times per month, so to see 4 of them in just over a week is alarming.
The bond and mortgage markets are currently oversold on a very near term basis. All of the momentum oscillators suggest that the market may rebound a little prior to employment on Friday. That said, do not read too much into is as the wider perspective is bearish. The 10yr would have to fall back below 2.0% to turn the longer term positive. Even with a 20BPS decrease in the 10yr would be still bearish.
In summary, rates have now slid higher for over a week and this is about the point where those that have been floating may reach their pain tolerance and lock in a rate. This also tends to be the point where things tend to turn and rates either stop heading higher or reverse course and head lower. I am not saying float - float - float, but simply do not jump the gun and lock because you are sick of the current trend.
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