Mortgage bonds ended the day on the down side which is bad for home loan rates. Pressure came from a rally in the stock market where the S&P closed just 35 basis points below it's all time high (all time high is 1565) and the DOW closed just 130 basis points below it's all time high of 14,165. Tomorrow we will get the meeting notes from the last Fed FOMC meeting which could really be a big market mover. Should there be any mention of inflation, or talk of ending the quantitative easing policy (QE3) in the near future, than we could see investors pull even more finds out of mortgage bonds and push stocks over those all time highs. Though this would be bad for mortgage bonds and the home loan rates that they are tied to for the short term; this could also cause investors to realize the highly over bought position that the stock market is in and create the sharp reversal that the stock market is way past due for. That of course would then be good for mortgage rates as investors will look to mortgage bonds to park there money until the stock market finds it's new floor of support. Watch the video above to find out exactly where rates are 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 Corporations 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
Loan Officer - NMLS# 830519
Direct: 619.279.6162
robm@summitmortgage.com
www.robmcnelis.com
