Mortgage Minute 2-28-13 "Home Loan Rates Try to Stabilize"

Mortgage backed Securities opened the day in positive territory, but soon lost the fuel to stay there. If not for a late afternoon rally due to the continued uncertainty in Italy and the whole Eurozone coupled with the US Senate defeating a last minute hail-mary plan to keep the cross the board cuts from happening and causing the stock market to retreat and mortgage bonds to surge. At days end, all there stock indices's finished down and mortgage bonds finished up 27 basis points. Though this sounds like a big day for mortgage bonds, it is only 10 basis points higher than where we closed on Tuesday. The net result is no better pricing, but three days of stability is good too. With all of the political and economic uncertainty right now, this would normally be the time to float for sure. However when looking at the technical trading patterns that all investors also watch, we can see that there are two very strong ceilings of resistance just above us right now. The 200 and the 50 day moving averages are coming together much like a double ceiling and this will take same real big news to break through. My suggestion is to take advantage of the rates that we have right now and lock in for the short term (if you plan on closing in the next few days). Watch the video above to see exactly were 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