Tuesday we received news that consumer confidence came in better than expected and that the treasury action was given only a "C" rating for participation. These items alone would normally help stocks and put a damper on Mortgage Backed Securities (MBS) causing rates to go up.
However, with US Allies getting set for air strikes in Syria, and new concerns over the U.S. Government hitting the debt ceiling yet again as early as mid October, there was a big "Flight to Quality" with investors boosting MBS above the 25 day moving average. At the close of the market today MBS were able to finish at their session highs, just 2 basis points below the 50 day moving average.
If tomorrow is a continuation of todays rally, that would be a strong signal of at least marginally better home loan rates to come. That is why I am recommending to cautiously float into tomorrow, but be ready to lock if we get some rouge member of the Fed making comments about the need to taper in September.
Please watch the attached video to see where home loan rates are at today. If you would like to talk about your specific scenario or needs, please do not hesitate to call or email me directly.
This statement of current rates is not an offer to enter into an agreement for a loan at a specified interest rate, number of points or both. Current interest rates and discount points are subject to change at any time without notice to you. Stated rate examples were calculated using a $300,000 loan amount, 80% LTV and 720 Min Fico at the stated term lengths. Licensed by the Dept. of Business Oversight under the Ca Res. Mtg. Lending Act.– 431-0421; Rates and charges in the advertisement do not apply to all loans made by the financial institution.