Time to lock

If you’re in the market for a home loan and have not locked your rate in – then today is the day to lock. Mortgage bonds have been falling the past few days and this morning’s strong consumer confidence caused bond prices to fall further. When bond prices fall rates increase.

I was just looking over the performance of Mortgage Backed Securities (the bond which determines mortgage rates) and I see a clear downtrend. After peaking at 98.97 on May 8th bond prices have fallen 125 basis points to 97.72 (today).  That is a pretty steep fall with a clear downtrend. So, things are not looking so good for mortgage rates.

This is also a heavy news week with plenty of opportunity for bond prices to fall even further. The Fed Meeting Minutes will come out on Wednesday and we have a Friday double header with both the Jobs Report and the Core Personal Consumption Expenditure (PCE) Index coming out. Remember a good Jobs Report, showing greater job creation has a tendency to push bond prices further down; whereas, stocks tend to rally.

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