Mortgage Market Update
Mortgage Market Update, March 25th 2013
The latest news from Cyprus this week about the bailout failure caused the bond market to tick upwards. However, other news caused a stabilization in the markets resulting in the bond market and therefore mortgage rates to remain about the same as last weeks close. The bond market overall is heading upwards and has been since the fall. In spite of this, rates still remain low. Some of the news this upcoming week could result in additional movement in the bond market.
Keep an eye on Cyprus
Bond markets will be following the Cyprus bailout carefully over the next week to see what kind of impact the news will have on the Euro and trickling into the US bond markets. The news may not have do much to change the overall thrust of our mortgage prices but they do still bear watching.
When the Fed speaks….
This past week may have provided some clarity regarding the overall Fed strategy for their bond buying program. The Fed renewed their commitment to purchasing bonds until the labor market shows more signs of stabilization. Unfortunately, the labor markets may not be rebounding any time soon given the belt-tightening strategies currently being forced on states by the sequester.
Housing market growth
The housing market continues to show some strength according to reports released this past week. In fact, housing sales continue to increase slightly even while inventory grows. New home starts also continue to show signs of strength which is relatively good news for home sellers as well as buyers.
This week there will be another $99 billion in bond sales and investors will likely be keeping a close eye on the developments in Cyprus. Other important data may also have an impact on this weeks bond prices. Some of the news to watch include
- Tuesday: Durable goods orders and new home sales
- Wednesday: Pending home sales numbers will be released
- Thursday: PMI and GDP numbers will be released
- Friday: Inflation numbers and personal income numbers
When you see this data released, along with ongoing Treasury auctions, there is bound to be some movement in the bond market depending on what else is occurring both at home and overseas.
This is a confusing time for those who are considering buying a home or refinancing their mortgage. For most, if you are within 60 days of closing, it may be a good time to consider locking in your rate. Buyers who have locked in their contracts with sellers may want to lock in sooner rather than later. Whether you are buying or refinancing, Core Mortgage Financial is here to help you ensure that you get the best possible rate for your home mortgage. Give us a call and we will be happy to help you decide whether it is time to consider locking your rate.