What? Lower Mortgage Rates Again? Yes!

Just a few minutes between meetings to jot down this important update.  What's happening?

Well, surprisingly enough, mortgage bonds are falling higher, pushing mortgage rates lower again.  Mortgage bonds are testing key resistance levels.  If these resistance levels break, we might see quite a rally taking rates lower.

Might we see the conforming 30 year fixed rate back under 4.0%  It is quite possible.

Check out today's chart below.

Fannie Mae 3.5% Coupon

Remember, in the chart, green is good (lower rates) and red is bad (higher rates).


If you want me to play with numbers and see if a refinance makes sense for you, let me know!

Brett Grendahl
952-393-9333 mobile
bgrendahl@bankingunusual.com

Memorial Day Weekend Brings Lowest Mortgage Rates of the Year

Good morning gang!

As I begin this post I notice I sure have taken some time between posts!  Too much face down in my work I guess.   :)

Time to share some thoughts on mortgage rates as we have reached lows for the year, and lows that are 11 month lows.

Take a look at the mortgage-backed securities chart below.

FNMA 3.5% Coupon 3 Month Chart

What's going on here?

This 3 month chart shows mortgage bond prices going higher the past three months.  In this chart, green is good for lower rates and red is bad and brings higher rates.

Those horizontal red lines show areas where we expect price resistance to exist.  Resistance to higher prices.  As you can see this past week the prices have been moving sideways, in a narrow channel.  This chart pattern looks like the market is attempting to break that resistance and go higher.

Now, for a longer term perspective, check out this 2 year chart below.

FNMA 3.5% Coupon 2 Year Chart

What is interesting to me here is how, if prices can break higher from a resistance level set back in November 2013, that the market will have some room to run.

Most fundamental aspects of the economy, where we sit in the waning of Quantitive Easing of the Federal Reserve, and the duration of the time we've had such low mortgage rates leads one to believe that mortgage rates should be going higher.

If current resistance levels hold, that will likely be the case.

But......but......it pays to heed the market price action at these levels.  As we've learned the past handful of years, it is very hard to predict what will happen.

Stay tuned!

GREAT NEWS FOR HOMEBUYERS
The bottom line of this blog post is that if you are planning a new home purchase during the busiest time of the year of the year for purchases, you are getting a nice market gift of low rates.

THINKING OF A REFINANCE
If you are in need to refinance your mortgage financing, here is your window of opportunity to save on the cost of the interest.

Of course I can help on either of those needs.  To loop me in, please call at 952-886-7227 or get my contact info at www.brettgrendahl.com

Brett Grendahl