17 September 2010 – This was a hectic week for mortgages, but not necessarily in the rate category. Rates once again skipped along the recent mean but generally ended the week flat. The action was actually on the lender side as demand for Fannie Mae and Freddie Mac refinance loans increased to a fever pitch as borrowers acted to secure the lowest possible rates.
SEPTEMBER STOCK RALLY STALLS
Early in the week, mortgage rates looked to be headed for some additional upward pressure on better than expected news in retail sales and consumer spending. These concerns were short-lived, since this did little to move the equities market. Also out this week were employment numbers, which also beat expectations. Beating expectations, however, was not enough as the numbers still pointed to a very weak recovery. As if this was not enough to cool the equities rally, word of 1,700 job cuts from bellwether FedEx sent a clear message that things are far from good. In a nutshell, borrowers got a reprieve on increasing borrowing cost.
I am recommending any of my clients closing within 15 days to LOCK their rates due to the unpredictable nature of the market. For clients closing more than 15 days from now, I am recommending FLOATING with very keen eye the market for LOCK opportunities and to act quickly on mortgage market improvement.Email This Post To a Friend.