Real Estate
Mortgage Minute: Rates Jump Back to Highs of 2 Weeks Ago, Syria Concerns Wane
Tuesday we saw home loan rates take a moderate jump higher as investors do not believe the U.S. will partake in any air strikes on Syria.
Tuesday we saw home loan rates take a moderate jump higher as investors do not believe the U.S. will partake in any air strikes on Syria (at least not this week).
In order for the president to order strikes on a foreign country, he needs the approval of Congress. The problem is that Congress is out of session until next week. So at least for now, the focus for investors was more localized to the U.S.
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With multibillion dollar corporations such as Microsoft and Nokia talking about product acquisitions, we saw money fly out of the bond markets and into stocks. The only good news for the day with respect to home loan rates was that Mortgage backed Securities (or MBS) were able to get back over half of the early losses to close the day down 19 basis points.
With no big market changing reports due out tomorrow morning, I recommend floating into the morning to see if we get better pricing since most lenders did not re-price for the better after MBS started their comeback. Do keep in mind that we do have the two big employment reports due out this week (ADP on Thursday and NFP on Friday). They can be very big market movers so be ready to lock if necessary.
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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.
Rob McNelis
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