Good morning and yes, it’s raining and even snowing up north. Welcome to the end of October at the beach. The Rehoboth SeaWitch parade is cancelled but the indoor activities are still happening at the fire station on Rehoboth Ave. The Bethany Beach “Wags, Witches, and Warlocks” event was moved to tomorrow – October 30th.
Mortgage pricing took a hit this past week on stronger economic news. Here is the view from an investment service I follow:
“A cautious approach is necessary to protect against extreme short-term market volatility resulting in increased interest rates considering the improbability of accurately determining how the market will react on a short-term day-to-day trading basis. Taking advantage of the historically favorable interest rates at their current levels makes sense in this environment. We have seen in the last few weeks alone that lower rates are not a given.”
Basically, a rate lock is your friend and you and your clients should not “play the market” hoping for even lower rates. My rate sheet is attached for the weekend and here’s the link to my rate sheet online if you want to forward it: Baxter Rate Sheet
Mortgage bond prices ended last week lower, which pushed mortgage interest rates considerably higher. Stock strength Thursday along with advancements in the Eurozone battle to shore the debt crisis resulted in a terrible week for mortgage interest rates. Stocks remained volatile with 100 plus point swings from day to day but a strong 340-point surge in the DOW Thursday resulted in rate increases of 3/4 of a discount point on that day alone. Mortgage interest rates rose by almost a full discount point for the week.
The Fed results Wednesday afternoon will be the most important event this week. The employment report Friday will be the most significant data release for the month.
Have a great weekend and never hesitate to contact me if you need something – hit the cell, send an email, pop a text, or contact me on Twitter or Facebook. And, if you need to get a buyer pre-approved? Just send them to my secure online application – Baxter Online Mortgage Application – Click on “Start Your Application”
And here’s an easy way to introduce me to clients when you make a referral. Send them to my About.Me Profile: Click Here