With the market closed for Good Friday, we technically saw rates plummet Monday morning although we talked Friday about the “drop”. Monday and Tuesday, we watched as rates stabilized and slowly fall further, dropping below 2% for the first time in 3 weeks. Then this morning we saw them jump back up above 2% and close at 2.04%. For mortgage rates, it means that rates dropped down to 4% and are still there. Investors didn’t believe we would stay in the below 4% range for long and the price differential between 3.875% and 4% on a 30 year mortgage remained prohibitively large.
Last week’s soft job creation report, coupled with uncertain news from Europe, Spain in particular, sent money to the safety of bonds. As the Europe “crisis” once again subsided, the money came back out of bonds and into the stock market again. All-in-all, we are trading in a small range on the 10 year and we can expect to see more of the same in the future with 30 year mortgages running from a low of 4% up into the 4.375% range.
Tomorrow’s jobless claims (359K) and Producer Price Index report (0.3%) will set the tone through the weekend.
Premier Lending, LLC
"There's More to a Mortgage than the Payment!"
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