Mortgage
Mortgage rates took a hit today leaving some of us wondering if rates will continue to go up. For the 5th day in a row Mortgage rates increased slightly. Rates are currently up .375% from Monday and will probably remain that way through tomorrow. All week we have been saying that the Economic reports due out this week will speak volumes on how mortgage rates will react. Investors have been pricing in certain expectation into the market and those expectations were confirmed today on a number of reports coming out. Jobless claims, Corporate Profits, and GDP all came in as expected and investors reacted with confidence. Investors worked quickly to begin searching for higher returns outside of the bond market creating a drop in Mortgage Backed Securities. Though investors took the news positively, we should probably take another look at the economic reports posted today. Jobless claims, Corporate Profits, and GDP all came in lower then the previous quarters and even scarier came in right in line with the same numbers we faced during our 2001 recession. Why investors are so confident, makes no sense to me. We are experiencing economic data similar to economic data’s reported during our last two recessionary times. Mortgage rates should be reacting quite well, but so far that is not the case. Another report used to measure pressure on inflation is the Personal Consumption Expenditure report which came in low, 20% lower then expected. The signs all point to mortgage interest rate decreases, but like everything else in this world nothing is certain. What I am sure of is that typically I do not lock on Friday’s due to lack of activity. Lets keep the FLOAT recommendation alive until early next week, but lets use caution, we may have to just bite the bullet and lock, we don’t want to have rates moving up like they did 6 weeks ago before making a locking decision. Good luck and God Bless.
Daniel
Tags: Economic reports, Interest Rates, Mortgage, Rates
