Mortgage
Rates Fall to New 2-Month Lows
September 24, 2013
Mortgage rates were lower yet
again, making for an astonishing 10th consecutive day without rates moving
higher. In the 13 days of rate sheets since the September 6th jobs
report, rates have only risen once. After only being able to claim 6-week
lows yesterday, today's rate sheets are the best in at least 2 months (very
close to 3 months). Conforming, 30yr Fixed rates are now down to 4.375%
for most efficient combination of closing costs and rate (best-execution)
though several lenders have attractive buydowns to 4.25%.
With
each passing day, we have more and more confirmation that the FOMC announcement
and most recent Employment Situation Report marked and confirmed at least a
short term turning point for interest rates. This is the
consolidation/correction that we'd been hoping for, and we're now a day or two
into it.
The
future path of rates is fairly uncomplicated at the moment. Markets are
comfortable treating early September rates as near term highs as long as
the economic data doesn't surprise to the upside. That means that the
fate of rates is tied to the economic reports that come out most
mornings. Stronger data will gradually persuade investors that the
Fed will reduce the pace of bond buying sooner than later.
On some small scale, that was a risk this morning,
but Consumer Confidence came in slightly weaker than forecast, and rates
continued to improve. We'll face similar risks with tomorrow's data, but
it will either take a concerted effort from several reports or a strong
Employment Situation report on Oct 4 to completely dash the dreams of this
low-rate rebellion. Between now and then we'll likely see some ups and
downs, as opposed to the exclusively flat-to-sideways bias we've had since Sep
6thContact me today!
Steven Banass
Director of Quality
Control
truerate partners
350
Pfingsten Suite 103 l Northbrook, IL l 60062
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