February 20th, 2014
February 20, 2014; 8:39am
Interest rate trends: Today – Higher; 10 days – Higher; 25 days – Flat
Interest rate recommendation: Locking bias
Mortgage bonds (MBS’s) are sliding worse again today, with no apparent reason. Initial jobless claims came in as expected and inflation figures came in unchanged. It is the lack of consensus in the FOMC meeting minutes that has the market not knowing what to do for sure. While MBS’s slide to the worse, we will switch to a locking bias, but there has to be some direction or guidance for the markets soon. As home purchases are down, so are mortgage applications for both purchase and refinance transactions. The national average for a 30 year fixed rate is 4.33% with a cost of 0.7% discount point. Have a nice holiday shortened week!