Mortgage Rates What Next

October 5, 2009 by  
Filed under Mortgage Rates What Next

The first part of the week gave us much lower rates which led to a spike in rate locks. However as usual there were some holdouts that were hoping to see the trend continue for a chance rates could drop to the 4’s with no discount points. Unfortunately Wednesday and Thursday saw the exact opposite with rates ending much worse, and Friday was pretty much a flat day.

Mortgage rates ended the week slightly better, but all signs point to more volatility.

There is a myriad of economic data scheduled for release this week which will have a heavy influence on the direction of rates:

For example:

  • Monday : New Home Sales
  • Tuesday : Consumer Confidence
  • Wednesday : The Fed’s Beige Book
  • Thursday : Initial Jobless Claims
  • Friday : Personal Consumption Expenditures
  • US Treasury planning to sell a record amount of debt, $115 billion in notes. If the notes are in low demand, bond prices will fall, and rates will surely rise.

If someone you know is waiting to lock their loan (for one reason or another) the most important advice you can give them is to have a completed application in place with a mortgage professional so when the moment is right, we can act immediately in obtaining a rate lock.

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