Good morning!
Mortgage bonds are slightly up in trading this morning. So far, they seem to be settling in and forming a base of price support after last week's dramatic drop.
You know, I've watched the daily trading of mortgage-backed securities for over 10 years now. In recent years, given the market manipulation by the Fed and the very narrow range rates have been moving up and down in, I stopped watching the day to day moves.
Things are changing.
Why?
Well, as the Fed begins to "talk the market" out of Quantitative Easing (QE) we need to acknowledge their eventual exit from their strong hand on the bond markets. As the markets migrate back to a place of normal market dynamics, what makes the markets move up and down, going back to the daily charts on mortgage bond trading becomes important again.
For clients who will be purchasing a new home, timing of the mortgage rate lock has the ability to save hundreds and thousands of dollars of interest over the course of the loan's amortization.
In general, we are going through a secular change to a trend of higher interest rates in the future but there will still be ups and downs in the market.
In order to advise my clients on the most opportune time to lock in a rate for their home purchase I am getting back into my old regimen of watching the intraday mortgage-bond trading to have a read on the market's pulse.
So, if you or a friend is planning to buy a home, please stop by here for my thoughts on the market and what is going on with mortgage rates.
Then, when you find the home you will purchase, please let me know and I can share why the decision to have me assist with the financing is one that you will never regret.
Have a great week!
Contact Brett Grendahl
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