Mortgage Rates Back to 3.5% for Some. If you have a truly ideal credit profile and loan scenario, a few of the more aggressive lenders are quoting conforming, 30yr fixed mortgage rates at 3.5% today. Almost all other lenders are only an eighth of a point higher at 3.625% for top tier scenarios. This is a rate landscape that hasnt been seen since early May 2013. Theres still quite a bit of ground to cover between here and the 3.125%-3.25% rates seen at the end of September 2012, but for all intents and purposes, 3.5%-3.625% was the upper end of the refi boom golden age from mid 2012 to mid 2013. Today finally brought meaningful market events into the mix whereas the first two days of the week lacked inspiration. As you might guess, that inspiration was positive for rates. Retail Sales data came in much weaker than expected. This is one of the more important reports each month. When economic data is weak, bond markets tend to benefit, and the mortgage-backed-securities that dictate rates are part of the bond market. In addition to Retail Sales, positive overnight developments in Europe also played a key role. Essentially, a long-awaited assessment of the European Central Banks (ECB) bond buying program from Europes highest court indicated that the ECB was within its right to undertake such a program. The implication is that this lowers the barriers to additional easing measures expected to be announced some time in the next two months. The big question of the day is whether or not the good times will continue for rates. In a word, yes. But as has been the case for nearly a year now, the good times will only continue until European growth and stability concerns turn a meaningful corner. Thats not the sort of thing that will happen in a day or that would be able to be identified in real time. So there will be a period of conjecture when the time comes. All we can know is that were not there yet. That said, we also know there can and will be head-fakes back toward higher rates even while the broader trend is positive/lower. The Mortgage News Daily
Posted on: Wed, 14 Jan 2015 22:31:36 +0000