This Monday the mortgage rates in USA have almost not changed since Friday. According to bankrate.com the benchmark overnight 30-year fixed rate mortgage loan rate has reached 4.94% from last week's 4.88%.
It is not surprising that the mortgage rates will tend to inch higher. As the economic outlook improves, this will be normal and expected move on the parts of the current mortgage rates.
My Mind On Mortgage comments on current mortgage rates and writes that mortgage backed bonds are currently trading even on the day and remain above a strong floor of support. As long as bonds can continue to trade above this level of support, it should be safe to float interest rate locks in hopes that we can see some improvement in the coming days. If bonds fall much below current levels and break through the floor of support, it will be time to lock on shorter term transactions.
This week, the Treasury will auction $155 Billion in Treasury notes. This added supply could weigh on Bond prices in the coming days, much like it did last week as the Treasury auctioned off $101 Billion in Treasury Notes.
It gives a unchanged current outlook on the mortgage rates saying that the mortgage loan rates will be floating while bonds stay above the current level of support.
Comment and add to the story without registration, but keep the comments meaningful please. Links are not accepted.
