Mortgage Rate Indicators for Denver
Although there is no true way to forecast with certainty what rates are going to do, mortgage rate indicators are something to keep an eye on if you are trying to decide when to lock your interest rate. Below are the mortgage rate indicators for the upcoming week.
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Market Comment - Week of December 14th, 2009 Mortgage bond prices were near unchanged last week holding mortgage rates steady. Trade was extremely volatile with swings of 1/2% in discount points common. The Treasury auctions were not as well received by foreign accounts as traders were hoping. The US relies on foreign central banks such as China to fund our deficit spending. If China were to decrease or cease purchasing US bonds and notes, rates would rise.
Trading Conditions As we all know, mortgage interest rates change on a daily and intra-day basis. With so much volatility, it is often difficult to make the right decision regarding floating or locking. What is important to remember is the fact that there is a difference between gambling and taking a calculated risk when making mortgage interest rate decisions. Floating into an economic release such as the employment report is usually a gamble, as was evident with the rate spike the beginning of this month. In addition, floating over a span of more than a few days is also a gamble. Unforeseen events can cause instability in the financial markets that results in mortgage interest rate volatility. On the contrary, floating on a day of positive market movement with no economic data the following day, while such action is still vulnerable to market movements, can be considered a calculated risk. It is possible for interest rates to push lower due to the uncertain future of the economy. Unfortunately the recent focus has been towards rate increases, which generally don't bode well for lower mortgage interest rates. Taking advantage of rates at the current levels guarantees a historically favorable interest rate and protects against uncertainty surrounding future interest rate developments. | |||||||||||||||||||||||||||||||||||||
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Views and opinions expressed on this site are not necessarily those of WR Starkey Mortgage.
Ruth Vogt, Branch Manager
Colorado LMB #LMB100023827
Ruth, I won't pretend to understand the market and what controls the rates -- this is why I rely on my BFF Mortgage Broker for advise, and why all buyers should enlist the help of a mortgage broker who "gets it". Thanks for the post Ruth!
Mary, No doubt it's very important to have a BFF Mortgage person to keep you current. Too dangerous not to!