MORTGAGE WATCH

Mortgage Watch

Mortgage Rates improved microscopically this week as the underlying bond market remained calm.  Since the beginning of 2021, bonds have been exceptionally volatile with yields moving higher and prices moving lower.  That’s a recipe for higher interest rates–something that was painfully obvious in February when the average mortgage lender jumped by half a percentage point in conventional 30yr fixed rates.

The big question is whether rates are truly leveling-off for an extended period of time or merely pausing for a few days or weeks before continuing higher.  Sadly, those questions can’t be answered until the market shows its next move, which brings me to this morning.  Currently, the 10yr TSY yield had moved above 1.630% in a HUGE move upward, with MBS selling off (this means higher rates likely today).

Bottom line: this market is too unstable to float and hope for any significant improvement. I am advising clients to LOCK as soon as escrow opens!

SOURCE & AUTHOR |

Keith Murphy Branch Manager – Essex Mortgage NMLS #330827

Direct: 714-309-1140

Apply: www.GoTeamMurphy.com

About the Author

Tim Morissette, also known in the community as Mr. Foothill Ranch, offers over 40 years of real estate experience which has given him an established reputation and unmatched market knowledge. He is joined by his wife, Michele, as they continue to offer personal service with an emphasis on achieving his clients' real estate goals. This unique combination of traits has led to his proven track record of referral and repeat business. This can be witnessed by the trust of homeowners in Foothill Ranch where he has sold twice as many homes and represented three times more buyers than the next-leading real estate agent for the last 20 years.