Strange Week So Far

Posted on October 15, 2009

This week has really been odd in terms of mortgage rates.  No sooner than we see some really positive movement, the bond market has fallen back.  This has happened a couple times this week already. This has kept mortgage rates from falling any lower.  In fact, pricing actually got a tad worse today.  So far this really isn't anything to become too concerned about, but if you have a loan in process I would be sure to discuss your lock strategy with your loan officer.  There is no reason to get too greedy and risk your rate going higher.  Every loan scenario is unique so just do what is best for you and your situation.  Rates still sit at great levels.  Low 5% rates and in some cases high to mid 4's isn't too shabby! 

The main reason for the recent spike has been the stock market.  JP Morgan Chase came out with better than expected earnings.  Couple this with some other positive news and it resulted in investors pulling money out of bonds and sticking it in the stock market.  This is never good for mortgage rates, but we all know how this cycle works.  Good news comes and people overreact and then bad news comes and they overreact even more.  So we are sure to see a correction and all should level out.  If in the next few days we receive some rate sheets for the better, it is a very good idea to lock and capitalize on those gains.  You can always visit www.flatbranchhomeloans.com to keep up to speed on our rates.

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Flat Branch Home Loans, Inc.