18 June 2010 – All in all, this was a truly uneventful week for mortgage rates. This, however, was a good thing. Rates began the week higher than last week and, for most of the week, there was a substantial stock rally that could have been problematic for rate watchers. Luckily, rates remained flat and actually improved by the end of the week. I am recommending that my clients LOCK in the short-term as there is substantial volatility, but in the long-term, I am recommending that they FLOAT as economic data is pointing toward an end to the current equities rally.
HOMEBUYER’S TAX CREDIT STILL UNRESOLVED
In housing, the big news is about the Federal Homebuyer’s Tax Credit and the looming deadline. At present, there has currently been no definitive announcements as to an extension. While there does seem to be consensus among lawmakers that an extension is necessary, it may come after the expiration. While this would grandfather in the loans that close after the current June 30th deadline, I know of very few buyers that are willing to take the risk by extending their closings. Based on this, lenders are scrambling to meet the demand for end of June closings resulting from the “pig in a python” effect the credit created. Let’s hope that common sense prevails with an 11th hour extension.Email This Post To a Friend.