BIG day yesterday for mortgage backed securities. In fact that big push helped us get back to some of the best home loan rates in month. The reason for this was due greatly to the Parliamentary Election in Italy, where two of the more economically liberal leaders have found themselves in a dead heat. This has both France and Spain very worried about the Eurozones 3rd largest economy.
Today on the other hand we saw stocks gain back a large portion of yesterdays losses as US housing data came in strong. New home sales came in with another 15.6% increase over last months already re-adjusted higher numbers and the Case Schiller Index for 20 of the largest metropolitan area in the country showed that 19 of the 20 showing continued year over year gains in value (only NY did not have an increase which could be tied to the major damage caused by the super storm). All of this information was well received by Wall Street as many investors poured their money back into stocks. This would normally be a really bad thing for mortgage backed securities, but the local concern over the debt ceiling crisis combined with the the mess in Italy has kept the more skeptical investors buying our less volatile mortgage bonds, allowing us to close on the day down only 10 basis points.
As the day closed, we ended up with the 25 day moving average acting as our floor of support about 21 basis points below us and the 200 day moving average as our ceiling of resistance 26 basis points above us. This leads me to think that if you are looking to close in the short term, you should really consider locking right now. If you have a little time, I think you can cautiously float as this debt ceiling issue could be a market mover.
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.
Got a question? Something on your mind? Talk to your community, directly.
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors.Write a new post...What do you want to share?Make an announcement, speak your mind, or sell somethingPost something