Mortgage Rate Analysis-Friday October 16th, 2009

Sorry for missing posting an update yesterday, I just found out I am going to be a dad for the first time and my day was crazy from there as you can imagine!  The good news is there was not really anything happening with rates yesterday so we didn’t miss much!

Mortgage rates moved slightly higher yesterday but managed to hang in there a lot better than expected considering all the economic data and earnings reports we got this week.  Today, mortgage-backed security prices are mostly unchanged and mortgage rates trended just a little bit lower.   But in the big picture however, compared to last week mortgage rates are about 0.25% higher.

Rates are holding steady today!

Rates are holding steady today!

Although there is talk of an extension, the first time home buyer tax credit is currently scheduled to expire on November 30th.  If you want to take advantage of this great money opportunity, get your loan application submitted.  One thing you should know is, you will be unable to lock your interest rate until you have secured a home contract.  Additionally, if you lock and change your mind on the original home for a different home, you will be required to do a new lock at the current market rate since the lock goes with the specific address.

Lock Today!

As for the question as to lock or float your rate today, we are somewhat neutral based on your risk tolerance level.  If you want to try to get a lower rate, it could happen, but it could increase just as easy.  If I am making that choice I would lock and secure the piece of mind.

Mortgage Rate Analysis – Monday October 12th, 2009

Rates are Rising

Rates are slowing on the rise.

Today the bond market is closed in observance of Columbus Day, so there is not going to be a lot of activity on the mortgage rate front.  Several lenders have published rates sheets, and several loan officers are working today so don’t hesitate to contact your mortgage professional.

What we are seeing in the rates that have been posted so far today is that the lenders are taking a more conservative approach to the day and have slightly raise all rates across the board.  Check out the best mortgage interest rates for Washington State right here.

Last week we saw a slight spike in rates right at the end of the day on Friday due to the precipitous drop in prices of mortgage back securities.

  • This week we are expecting several economic reports that potentially have the ability to slow the rise down and maybe lets us hold steady for a while.  Wednesday we will get Retail Sales and the meeting minutes from the Sept 23rd Fed Meetings.  Those meeting minutes will get analyzed to see of any hint of the feds future actions might be hiding in them.   There are several other reports due this week that if they hit their expectations, the markets should respond favorably!

This would be a good week to keep a close eye on rates are they could be a bit volatile over the course of the next week.  If you see a rate you like you should really considering locking, and not floating on the hope that they will go down.