MBS’s are getting beat up again with a better than expected ADP employment report

December 4th, 2013

Good morning!
Interest rate trends: Today – Higher; 10 days – Higher; 25 days – Higher
Interest rate recommendation: Locking
MBS’s are getting beat up again with a better than expected ADP employment report. Interest rates increased again, but are being held up some due to other worse than expected economic data. Fear of the Fed tapering QE3 is running rampant and causing interest rates to increase. Locking short term, for loans closing in the next week or two is still recommended, but longer term as in months, there are reasons to continue to float, albeit risky. The ADP employment report will increase the expectations for the government Jobs Report on Friday. If we see the Jobs Report numbers on Friday, exceed expectations, interest rates will increase more. If they come in line with expectations, we’ll see little movement and if they come in lower, we should get back some of what we lost today and the last few days. Tough call! Have a great day!
This email is sent out once per day, but on our website, on the “Interest Rates” page, you will see a “Current rate trend” indicator to see what interest rates are doing throughout the day.
30 year fixed rate: 4.250% with 4.313% APR.
20 year fixed rate: 4.125% with 4.226% APR.
15 year fixed rate: 3.250% with 3.358% APR.
10 year fixed rate: 3.125% with 3.362% APR.
Use the link below to see all our posted interest rates:
Please visit http://www.GreatAmericanLending.US for further information and/or to apply.
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Have a great day and thank you for choosing Great American Lending.
Thank you.
Dale Packer, MBA
Spencer Packer – Colorado & Utah