As mortgage rates trend lower and are expected to stay on that path for the rest of this week, more home buyers are considering the possibility of locking their rates in now. This should give home buyers who are on the fence another reason to make their move soon, and will hopefully stimulate more business for the mortgage industry this week.
First, let’s talk about the rates.
- Rates Currently Trending: Lower
- This Week’s Rate Forecast: Neutral
- This Week’s Potential Volatility: High
According to Sigma Research, rates were trending slightly lower yesterday morning. Last week the MBS market improved by +19 bps, which probably wasn’t enough to affect rates or fees, but extreme volatility likely prompted more borrowers to lock in their rates.
The rate forecast for this week is neutral; however, there are three things to watch that could be driving forces in pricing: Oil, China, and the ECB Meeting. All three events are outside the U.S., which just goes to show how global events can have an impact on domestic industries. Here in the U.S., we will have a light week for economic data, which is why the forecast shows little to no change in rates. Nevertheless, we will want to keep an eye on existing home sales data that will be released Friday.
As for this week’s volatility, once again it’s high. According to Sigma Research, the risk for volatility is high today and this week due to oil being the main driver of mortgage rates. As long as uncertainty remains strong in that market, so it will be with mortgage pricing.
So what’s the bottom line?
If you’re weighing the risks and benefits of locking in your interest rate today, or floating your rate in hopes they will go down, it’s important to stay in close contact with your mortgage professional. He or she has access to all the latest mortgage market data and can best advise on which strategy makes the most sense in your situation. Keep in mind that the information in this post may be out of date by the time you read it, so always check with your mortgage professional for the most accurate data.
If you’re in the state of Texas and looking for an affordable mortgage rate, talk to us today. We offer a wide variety of home loans to suit just about any buyer and can provide expert advice when it comes to comparing rates and programs. Simply call us at (972) 591-3097 or click here to contact us through our website.