Monday, December 6, 2010

Mortgage rates begin week flat as bond market corrects from oversold levels

Are you currently in the process of buying a home or refinancing in Chicago or vicinity? Trying to decide when to lock can be a stressful and difficult decision. In my job as a mortgage lender, I watch the markets daily to keep my clients abreast of changes to assist them in securing the best mortgage rate possible. Please see my recommendations below.

Short-term (No Change) - At any point less than 15 days, I would LOCK. More than 15 days, I would recommend LOCKING unless your risk tolerance permits calmness in the face of severe volatility. In this case, I would FLOAT and LOCK an ANY gains.

Long-term - (No Change) LOCK on ANY price improvements as windows for improvement will be small and fleeting.


The week ahead for economic data that can affect mortgage interest rates

Tuesday

  • $32 Billion 3 Year Treasury Auction
  • October Consumer Credit

Wednesday

  • Weekly MBA Mortgage Applications
  • $21 Billion 10 Year Treasury Auction

Thursday

      • Weekly Jobless Claims
      • October Wholesale Inventories
      • $13 Billion 30 Year Treasury Auction

      Friday

      • October Trade Balance
      • November Import and Export Prices
      • University of Michigan Mid-Month Consumer Sentiment Report
      • November Treasury Budget

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