Mortgage Rate Update October 20, 2014

After creating new lows on Wednesday of last week rates have risen by ~.125%.  Rates remain very attractive.

A “flight-to-safety” is pressuring rates lower.  Since the first US case of Ebola was discovered back on September 30th the S&P 500 has fallen by 5%.  Bad news for stocks is often good news for mortgage rates.

Let’s not forget that investors were cautious over geopolitical tension around the globe prior to the Ebola story entering the mainstream media.  Therefore, this storyline is exacerbating fear and anxiety that already existed.

Looking ahead, the economic calendar for this week is fairly short but there are some significant releases including Existing Home Sales (Tuesday), the Consumer Price Index (Wednesday), and new home sales (Thursday).

As long as the fear over Ebola remains in the mainstream mortgage rates will likely remain relatively low so we’ll continue to float.

Current Outlook: floating