Mortgage Rates Recap

Forwarded exclusively by:	Tony & Wendee Close CLS Financial Services Office: 562-594-6884 Email: closeteam@clsfinancial.com website: www.clsfinancial.com NMLS#: Tony: #234456 Wendee: #234445
Monday, June 24, 2013
Last Week's Mortgage Rates Recap Last week was nothing less than tragic for mortgage rates - as we forecasted. The Fed has spooked the markets with concern that the end of QE3 is on the horizon, and no matter what they continue to say it isn't herding the bears back into the cage. Normally MBS (Mortgage Backed Securities) would have benefited from the huge sell off seen in the stock market - but this last week was anything but normal. We saw MBS sell off over 300 basis points, which means we saw consumer rates increase an average of .625% in a single week (meaning a consumer who started the week with a quote of 4.125% ended the week with a quote of 4.75%). We hope that anyone that was able to lock in their interest rate was listening to the last few weeks of market activity and was able to lock in better rates. The bad news is that barring unforeseen market shaking news, we may pick a little bit of that rate hike back up in better interest rates over the next few weeks, but any retracement we do see is likely to be small (most consumers will not see average rates below 4.5% for conventional 30 year fixed mortgages). This Week's Mortgage Rates Forecast Mortgage Rates Currently Trending: HIGHER This week has opened carrying the same momentum as last week, opening up with a huge loss in MBS this morning, and seeing rates already on the rise. There isn't much in the way of economic news that is getting reported this week that could spark a turn around, so expect the current bearish market to continue. BOTTOM LINE: We are not expecting to see things improve yet for mortgage rates. Don't get caught up waiting for things to go back to where they were. Work with your Mortgage Loan Originator to stay connected to the live trading market to protect your loan, and expect more volatility through this week. RateAlert’s Most Trusted Mortgage Loan Officers MLOs that subscribe to RateAlert’s Executive service have the training and market knowledge, along with the data at their fingertips, to expertly help you navigate the difficult and sometimes treacherous process of obtaining home financing and securing some of the best rates the market has to offer. If you would like to learn more about how to time the market to obtain the best interest rates, don’t hesitate to contact the MLO who sent you this commentary.