Tuesday the stock market closed down on the day, but the Mortgage Backed Securities (MBS) market continued the rally started last week. That means better home loan rates for us!
Though there are many reasons for the "Flight to Quality" for MBS investors, the real stimulus came from comments from Fed member Dudley. He said that tapering of the buying program for MBS and Treasury Notes would not depend on a date, but on data. Meaning that until there is real data that shows the economy is ready to move forward on it's own, the Fed will continue their purchase program (but he did add we should not rule out tapering this year). Second he mentioned that the debt ceiling that will be hit in the coming weeks could have a negative effect on the economy.
Comments like these lead investors to realize that we are not out of it yet, and that maybe the stability of MBS is the best move for now. With that in mind I will continue to advise my clients to float in the short term, but stay close cause it could change quick!!
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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.
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Rob McNelis
Loan Officer - NMLS# 830519
Direct: 619.279.6162
robm@summitmortgage.com
www.robmcnelis.com
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