This week’s Mortgage Rates Forecast by guest blogger Brian Crowder
Risks Favor: VERY CAUTIOUSLY FLOATING
The technical indicators this week show that Mortgage Backed Securities are hovering in overbought territory, meaning we may be poised for a market correction driving rates up a bit or pulling back that rebate we got last week. However, there is much that will be driven by news this week with continued talk and focus on the sequester and Europe.
This week for consumers who are 2 weeks and further from closing, we will continue to look to float, being ready to lock interest rates with any sign of rate deterioration. For consumers who are within 7-10 days of closing, locking is probably the safest measure because there will be no time to recover lost ground in the case of a deterioration. We will not likely see drastic interest rate movement, but we will probably see pricing fluctuating throughout the week.
BOTTOM LINE on locking rates:
This week, consumers should stay in close communication with their Mortgage Loan Officer and be ready to lock in their rates on signs of weakness, or ready to capitalize on rebate improvements if the market improves. Don’t look for much of a true interest rate improvement though, the market doesn’t look like it is quite ready to allow for that yet.
Additional Resources (updated 5/19/14): comprehensive Mortgage Lender List