Last Week's Mortage Rates Recap
Last week displayed the volatility we warned about, and ended on a terrible day. The market losses we saw occur on Friday marked a new point in technical indicators for mortgage rates, and saw mortgage rates reprice for the worse on Friday for about .125% higher. We were able to warn most of our consumers early on, as we monitor the market in real time and can act quickly when the trend starts.
This Week's Mortgage Rates Forecast
Risks Favor: LOCKING
This week the risks still favor locking, as we see a new baseline for technical indicators that rates will continue to get worse (rates will go up or rebate will be lost). Economic data on the calendar will cause lots of movement, with lots of data including the FOMC policy statement on Wednesday that will be a market mover. Consumers who choose to try and wait it out, trying to achieve the best rates that we have seen in the past, will likely pay for that mistake. All technical indicators point to locking in interest rates before we see continued rate erosion. How we end the week will be especially important. Again, we must emphasize that consumers need to see the risks for trying to obtain better rates are much higher than the potential rewards they may see. All technical and fundamental indicators point to locking in rates as soon as possible until we see a reversal.
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