Mortgage Rate Update December 22, 2014

Housekeeping: Happy Holidays!  This will be the last ‘rate update’ of 2014.  I will back on Monday, January 5th.  Have a safe and joyful season!

This is a holiday shortened week with the markets open only a partial day on Wednesday and closed entirely for the Christmas holiday.  The markets will be back open on Friday.

 

HAPPY HOLIDAYS!  'RATE UPDATE' WILL BE BACK ON JANUARY 5TH.
HAPPY HOLIDAYS! ‘RATE UPDATE’ WILL BE BACK ON JANUARY 5TH.

Mortgage rates are effectively flat from the latter half of last week.  US stocks had huge gains on Thursday and Friday last week.  Despite the rally mortgage rates managed to trade sideways.

According to the National Association of Realtors existing home sales slowed in November but the headline decline is misleading because they also revised higher the previously released October figure.  Year-over-year the median home price nationwide rose by 5.0%.

Significant economic data is scheduled for tomorrow and Wednesday and with the fewer traders at their desks this week we could see some volatility.  In addition, the US Treasury is set to auction $104 billion in new debt.

From a technical perspective mortgage rates are entering a tight trading range in between the 25-day moving average and overhead resistance.  I am going to recommend a locking approach mainly because we have more to lose than to gain.

Current Outlook: locking

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.