Tag: lock my rate

Rate Update August 19, 2009

Posted on by Evan in Rate Update

Yesterday afternoon mortgage rates increased but have reversed lower this morning to match levels yesterday’s ‘rate update’.

Mortgage rates improved this morning in response to weaker equity markets around the world.  The Chinese Shanghai Composite Index lost 4.3% overnight.  It is now off 20% in the past 2 weeks.  Here in the US stocks opened up lower but have managed to claw back close to even in the last few minutes.

If you are a regular reader of ‘rate update’ then you know that mortgage-backed bond prices (MBS) often trade inversely with stocks (if not, click this link); especially in the absence of other economic data.

Tomorrow the US Treasury will announce the volumes of their auction schedule next week.  This announcement has hurt mortgage rates each of the past two times the announcement has been made.  We are going to recommend a short-term locking stance.

Current outlook: locking in short-term

Rate Update July 28, 2009

Posted on by Evan in Rate Update

Mortgage rates are unchanged from yesterday.

As I explained in yesterday’s ‘rate update’ we are closely watching the level of foreign participation in this week’s US Treasury auctions.  Today there will be $42 billion in US T-bills sold to the market.  We wouldn’t surprised to see mortgage rates increase due to the additional supply of bonds on the market.

S & P released their monthly Case-Shiller real estate report.  Many experts consider this report to be the most accurate measure of home prices (click here to understand why).  The report showed that home prices declined on a year-over-year basis at the slowest pace in 12 months.  Many analysts are interrupting this as more evidence that the housing market is at or near bottom.

If you haven’t yet read about the new federal mortgage rules which take effect July 30 and could delay real estate closings you can do so by clicking this link.

Current Outlook: bias towards locking on short-term transactions with additional supply of treasury bills.

Rate Update July 27, 2009

Posted on by Evan in Rate Update

Mortgage rates are unchanged from Friday.

This week’s schedule for US Treasury fixed-income securities auction:
The US Treasury is scheduled to sell a high volume of T-bills, notes, and bonds this week. On Monday, $6 billion in Treasury-inflation-protected 19.5-year notes will be auctioned; along with $32 billion in 13-week bills and $31 billion in 26-week bills. On Tuesday, $27 billion in 52-week bills will be auctioned, along with a heart-stopping $42 billion in two-year notes. On Wednesday, the Treasury will auction $39 billion in five-year notes. And on Thursday, $28 billion in seven-year notes will be auctioned. In total $205 billion in securities will be sold.

Here is a link to read the blog post on the new mortgage rules which could delay real estate closings.

Current Outlook: bias towards locking on short-term transactions with additional supply of treasury bills.