Currently, the Bond is enjoying a nice move to the upside. I recommend floating to see how much we can benefit from this morning’s move higher. But be prepared to lock later today if Traders get edgy in advance of tomorrow’s Treasury auction announcement, which has typically been bad for Bonds. I will keep you posted.”……. This is the type of guidance I am getting after a hectic week last week and an other up and down week this week. Signs are there for rates to improve this week after the Feds comments last week with a commitment to keep the rates down. But remember that they are referring to the Fed rate that does have an immediate impact on the prime rate that drives most of our home equity lines but has less impact on the 30 yr rates that help buyers through the buying process and home owners considering refinancing.
The bond market is doing it’s darnedest to break the 100 day moving average ceiling but that usually can push the markets to correct, retreat and reevaluate the pricing. So rate could improve but if your closing in the next 20 days I’d lock after mid week improvements this week.
As of Wed morning….
FHA………………….. 5.275% Still allows 3.5% down payment
Conventional……5.5% 10-20% down depending on credit scores
Jumbo 5/1 ARM….5% (just came down! )
Brian Scott
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