Mortgage Rate Update April 25, 2013

Mortgage note rates are unchanged but pricing has improved so overall the rates environment is slightly better from the beginning of the week.

Slightly lower weekly jobless claims figures are causing some muted optimism in the financial markets this morning.  The Fed is scheduled to meet for their regularly scheduled monetary policy meeting next week and this is the last jobs related data point prior to the meeting.  With interest rates at 4-month lows we’ll listening closely for any comments relating to the end of quantitative easing which is a major influence on low yields.

As we pointed out in last Thursday’s ‘rate update’ the US 10-year treasury yield continues to hover around the 1.70% level.  It traded below that level yesterday for a period of time but was unable to close below that level of resistance.  Should the yield break below 1.70% and close there it would be an encouraging sign for mortgage rates.

In the meantime, I will remain in a floating position as rates are trading in a very tight range.  Even if rates do not improve at least we buy ourselves time and may be able to lock in a 30-day window as opposed to 45 which offers modestly better pricing for consumers.

Current Outlook: floating