For the first post of this year, and for some time, I thought to cover the good start for mortgage rates for 2014.
After appearing that rates were moving yet higher, given the Fed's move to beginning tapering their Quantitive Easing, and what looked like promising jobs data, last Friday's monthly Jobs Report came in much weaker than expected. This gave mortgage bonds (mortgage-backed securities) their best rally day in some time.
Look at this chart:
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| 3 Month Fannie Mae 4% MBS
That big green bar towards the right was last Friday's trading activity. That positive rally broke the trend line of the downward action in price over the past three months. Coupled with today's continuation rally and rates should be stable for the coming weeks.
Most likely, the price will move up to test that blue line (the 200 day moving average).
For those spring market purchases this price action should temper any major rise in rates. Good news, right?
I expect to be blogging more regularly this year. So, stay tuned here for more from the front lines of mortgage finance on mortgage rates, Qualified Mortgages, and what it really takes to get a mortgage closed in today's lending environment.
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If you are purchasing a home in any of the 50 States I can help you. Why take the risk of working with anyone else. My deep credit underwriting background and broad industry experience benefits you in the comfort of knowing you will close on time and as expected. That trust and confidence of my clients is what has built my book of business and kept me around so many years.
I'm always happy to start a relationship with people who value what I do, make home purchase dreams come true!
"Life is a garden. Dig it!"
BG
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