Well, there’s a lot to talk about, but I’m going to save most of it for my Mortgage Market Week in Review newsletter (send an e-mail here if you’d like to sign up for it – it’s free), and I’ll just hit a few highlights here:
- The markets initial face value reaction to the bank stress test was that it wasn’t “SO” bad. So the stock market is rallying on that.
- The jobs report was bad but not as bad as expected.
- Oil prices are going up.
- As I discussed here, the spread between Treasuries and Mortgage rates is tightening.
When you combine all of those factors, we lost .125% on rates today.
We’re at 5.0% on a 30 year fixed refi with 0 pts.
and 4.75% on a 30 year fixed purchase with 0 pts. (both assume a credit score of 740 or higher).
Recommendation – I don’t want to sound like a broken record, but this is a market to look at reducing risk and lowering financial challenges. There’s a much greater risk of rates jumping up than there is rates dropping further, so I recommend locking all loans.
Have a good day and a good weekend!