Mortgage Rate Update July 22, 2013

Posted on by Evan in Rate Update

Mortgage rates have continued to improve modestly.  30-year fixed rates are now at the best levels since the beginning of July.

At this point it looks to be a fairly quiet week.  The economic calendar is fairly light and the Fed has successfully calmed the market’s fear on spiking rates (for now).  Therefore, I expect mortgage rates to respond to the stock market (SEE HERE).

I EXPECT INTEREST RATES TO REACT TO STOCKS THIS WEEK.
I EXPECT INTEREST RATES TO REACT TO STOCKS THIS WEEK.

We are in the heart of Q2 earnings season so a string of strong releases would likely push mortgage rates higher and vice versa.

In housing news, the National Association of Realtors (NAR) reported that existing home sales were up 15.2% from a year ago but down 1.2% from last month.  What was interesting about the report was that it showed distressed sales comprised of only 15% of the overall total; the lowest level since NAR started tracking this information in 2008.  On Wednesday, new home sales will be released.

It may be tough for rates to improve much this week as they’ll have to compete with $99 billion in fresh debt supply from the US Treasury.  I will remain in a locking bias because the longer-term outlook for rates have not changed.  Lock ‘em while they’re low!

Current Outlook: locking bias