Okay, I apologize for getting this up late, but this week’s schedule is a little chaotic. If you’re a friend of mine on Facebook, you’d know why my schedule is chaotic, but it’s all good.
So what happened in the mortgage market today?
- The bond market and the mortgage market got hammered last week. Not just beat up a little, but seriously hammered. And the beating that it took was frankly more than the economics of the situation justified.
- I told you on Saturday that mortgage rates go “up on an elevator and down on the stairs.” That means that they go up a lot more quickly than they go down.
- So we saw a bit of a reversal in the markets today. The stock market didn’t do so good today and mortgage rates improved. We actually ended today .25% lower than where things ended on Friday.
How long will that continue? Hard to say. I’ve got a post coming up tomorrow that talks about the Fed and their plans for buying more Treasuries. I don’t believe that will help mortgage rates.
My recommendation remains to lock all loans. I believe that the risks remain significantly to the upside on rates and while there is downside potential, it’s not nearly as prevalent as the upside risk.
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