As predicted, mortgage rates climbed eight basis points in week over week reported and now sit at 3.960%. The move was expected and based on the shortened trading factoring the July 4th holiday. Therefore, the two-point gain from last week was wiped out.
Positioning
Overall rates are very attractive for home buyers as well as those seeking to refinance their existing mortgage. The key for most consumers to take advantage of rates is positioning or being able to make a formal application and having the ability close within a reasonable period of time. Refinancing can be trickier as many lenders lock in the rate for 60 days at time of preliminary approval. Consumers completing a purchase transaction are guided by the close of escrow, so locking before that time might be unavailable.
Supply and Demand
While the 10-year treasury bond is the key instrument in gauging mortgage movement, there are other factors to consider such as the overall economy and even world events. Supply is demand triggers movement up or down.
Mortgage applications have been stable, however should there be a surge the result may be higher rates. Just this month, lenders are preparing for more applications as underwriting guidelines have changed which may motivate more borrowers to consider a transaction.
Rate Recap here
The Freddie Mac Primary Mortgage Market Survey® (PMMS®) has evolved since its inception in April 1971 into the foremost reliable, representative source of regional and national mortgage rate trends and is relied upon by the mortgage industry and the public in gauging market conditions and evaluating mortgage loan options.
Thomas Reports 