Mortgage Market Update
Mortgage Market Update- January, 26 2013
For the first time in several months, the mortgage rates have ticked slightly upward this week. This doesn’t mean it is time for panic however since rates are still relatively low. There were a number of factors that had an impact on rates this week including:
- Stock market improvement – because Congress has reached a new deal on the impending debt ceiling, the market overall was greatly improved. This week, the market showed unparalleled strength and reached levels not seen since 2007
- European Union Debts – in a surprising move, more debt will be paid back to the EU sooner than expected. In fact, it appears that some funds will start being paid back over the next several days which is much sooner than expected, resulting from stronger than expected economic data
- Unemployment claims – new
The upcoming week will bring a whole new rash of information that could impact bond prices but it is important to note that this past week was pretty volatile. Some easing may be seen early in the week but depending on the auctions that will be held Monday, Tuesday and Wednesday, we could see an increase in rates towards week end.
Upcoming news may be overshadowed by the Fed meeting on Wednesday which may provide some insight into how long the Fed plans to continue buying bonds. In addition, GDP numbers for the fourth quarter will be released, durable goods orders and pending home sales will also be released this week. The most anticipated news may come in the form of overall unemployment, construction and manufacturing spending.
Overall, this past week was a little nerve-wracking since the flight-to-safety seems to have tempered for the time being. If you are considering refinancing or you are purchasing a home, you may be considering locking in your rate. With so much positive news this past week, it may be worth locking your rate to protect yourself against more good news. If you are uncertain about how you could benefit from locking your rate, contact Core Mortgage Financial. We’ll evaluate your individual mortgage options and help you determine if locking in your rate is good insurance.
Call our office anytime at 855-554-2673, We have licensed loan originators available to discuss your mortgage options !
Disclaimer: This blog is for informational purposes only for our readers. Please contact your mortgage company for rate lock guidance about the mortgage market updates. Market update for January 18-22, 2013