Archive for the ‘Rate Lock Recommendations’ Category

Missed The Mortgage Rate Boat ? Timing, Luck or Greed . . . maybe a bit of each ?

Tuesday, June 9th, 2009

Just like the stock market and how quickly prices can go down; mortgage rates have shown they can go up just as steeply and quickly. There has to be ton of people kicking themselves for trying to time the bottom and do better than the 4 to 4.25 percent mortgage rates of a month back.

Rates will possibly get back under 5% but not as low as they were, so there may be another opportunity if your circumstances allow you to wait. Lesson learned hopefully.

Q : Wait for how long ? A : No one has a crystal ball. Two weeks, two months ? As I’ve posted elsewhere, with government intervention, mortgage rate movements can be unpredictable.

(I personally don’t trust the government or government agencies to necessarily do the right thing. I think greed still prevails at the Lender level. Why not ? They got bailed out once. No lessons learned there that I can see.)

As of this posting, mortgage rates continued to tick higher as the market showed a disdain for the risks associated with investing in mortgage-backed securities. MBS are similar to treasuries in that the price and the yield are inversely related, meaning as price goes lower, yields move higher and vice versa. So as MBS move lower in price, mortgage rates move higher. Monday June 8th, over lunchtime hours, MBS made a dramatic move lower in price forcing lenders to reissue worse rate sheets. This increased the par 30 year conventional rate mortgage by another .125% in rate. By day’s end, most lenders were offering par 30 year fixed rate mortgages in the 5.5% to 5.625% range.

Home prices are still very affordable and rates are still under 6%, so it’s still a great time to buy. And if you are a first time home buyer you can get up to $8,000 back from the government. Don’t leave it to chance that things couldn’t get worse.

Source :

Rate Lock Recommendation – 11/21/07 12:45 PM EST

Wednesday, November 21st, 2007

Wednesday’s bond market has opened strong following early stock weakness and concerns about the economy next year. The stock markets are showing sizable losses with the Dow currently down 130 points while the Nasdaq has fallen 35 points. The bond market is currently up 23/32, which will likely improve this morning’s mortgage rates by approximately .250 of a discount point.

This morning’s economic data has not had much of an impact on today’s trading or mortgage rates. Comments made by the Fed late yesterday are influencing this morning’s trading much more than the data is. The Fed lowered its economic outlook for next year, which has affected stocks negatively and helped shift funds into bonds. This has pushed the yield on the benchmark 10-year Treasury Note down to 4.01% and is flirting with the 4.00% threshold. It actually broke that level during overnight trading, which is the first time since September 2005. It will be interesting to see if it will close below 4.00%. Doing so leaves room for further improvements and lower mortgage rates. If not, rates will likely not see much more improvement in the immediate future.



Rate Lock Recommendation – 11/14/07 1:13 PM EST

Wednesday, November 14th, 2007


Wednesday’s bond market has opened in negative territory despite weaker than expected economic news. The stock markets are relatively calm with the Dow up 20 points and the Nasdaq down 1 point. The bond market is currently down 8/32, which will likely push this morning’s mortgage rates higher by approximately .125 of a discount point.

The Commerce Department gave us October’s Retail Sales figures early this morning, saying that sales rose 0.2% last month. This matched forecasts, therefore, has not had a significant impact on the bond market or mortgage rates today.


Rate Lock Recommendation – 11/04/2007 9:33:00 PM EST

Monday, November 5th, 2007

This week is very light in terms of economic releases for the markets to digest, especially compared to last week. There are two monthly and one quarterly reports on tap, but only the quarterly one can be considered to be highly important. This makes it quite likely that we will see a fairly quiet week in the mortgage markets, assuming that the stock markets do not repeat last week’s volatility.