Mortgage Rate Update November 13, 2014

Mortgage rates are very similar to where they stood one week from today.

The stock market continues to roll along which  makes it difficult for mortgage rates to improve.  Since mid-October the S&P 500 is up almost 10%.

Adding to the rally is Wal-Mart Stores that reported better than expected 3rd quarter results earlier today.  Furthermore, Warren Buffett’s Berkshire Hathaway announced that they would acquire Duracell Batteries from Proctor & Gamble.

Despite the rally in the stock market mortgage rates remain near-2014 lows.  As we touched on a few months ago, if interest rates only responded to domestic based economic news I expect mortgage rates would be higher than they are today.  However, weakness in other parts of the world are keeping a cap on rates moving higher.

For example, the yield on the German 10-year bund is currently at .82% which when compared to the US 10-year treasury note at 2.35% is much lower.  The spread between these two creditworthy countries is likely keeping US mortgage rates down.

I don’t see any urgent reasons to lock in today but its difficult to say if waiting around will pay-off either.

Current Outlook: floating