Here are my updates for February 3, 2014
Mortgage Rates Only Slightly Lower After Weak Employment Data
Mortgage rates were finally lower today, but the drop was modest given that it was the product of a weak jobs report–typically a bigger market mover. Additionally, when viewed against the past three straight days of weakness, today only got us back to Wednesday’s levels. The most prevalently quoted conforming 30yr fixed rate for the very best borrower scenarios (best-execution) remains at 4.375% for the most part though 4.25% and 4.5% are both fairly close. When adjusted for day to day changes in closing costs, rates fell an equivalent of 0.04% today.
Throughout January, rates were moving lower with purpose. This continued into early February to a point where we were left to consider whether this was a market-based correction that had run its course or potentially just the first phase in a bigger move lower.
Any time rates are approaching those sorts of “crossroads levels” ahead of a report like the Employment Situation, we can infer some indecision on the part of financial markets as well as the hope that the important report will provide guidance. In that regard this week has ended in somewhat of a frustrating fashion.
Senior Director, Coldwell Banker New Homes Division
With over 200 condominium, townhome and loft projects successfully marketed
“Fewer properties for sale with such remarkably low interest rates make it a great time to sell but a more difficult time to buy”