Mortgage Rate Update December 15, 2014

Mortgage rates are back at the best levels of the year.

This week is shaping up to be “the storm before the calm” as we are facing a busy economic calendar along with a return of volatility in the financial markets.  And of course next week brings the Christmas Holiday when we don’t expect too much activity.

The yield on the US 10-year treasury note, which mortgage rates loosely follow is back down near 2.11%.  We started 2014 off at 3.00%.  Over that time mortgage rates have improved by approximately .625%.

Over the next 2 days there is a grouping of significant economic data that will be released.  On Wednesday the Fed will conclude its regularly scheduled monetary policy meeting and deliver it’s post meeting statement. The Fed’s comments can always sway the markets.

From a technical perspective both stocks and mortgage-backed bonds are trading in a tight range.  I will shift to a locking position since mortgage rates are presently at 2014 lows.

Current Outlook: locking