Rate Lock Advisory - Monday April 26th

I am predicting a decrease in rates this week to the same levels we saw them last Wednesday. If (or should I say when) they fall, I would suggest being in a position to lock in your loan.

DATE: Monday, April 26, 2010

TIME: 8:00 am PST

CHANGE (from last Monday): Improvement

*** The Fed News last week immediately dropped rates on Wednesday afternoon, however pricing worsened Thursday and Friday- still below last Monday’s update. Get in position to lock pending more market movement…

Rate Lock Advisory - Monday April 26th

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Monday's bond market has opened fairly flat despite an early stock rally. The stock markets are reacting favorably to the release of details of the Fed's plan for relieving banks of their bad holdings in mortgage related securities. The bond market is nearly unchanged from Friday's close, which will likely keep this morning's mortgage rates close to Friday's levels.

The National Association of Realtors announced late Friday morning that home sales rose this month, greatly exceeding analysts' forecasts. This report was expected to show a small incline in sales, meaning that the housing market was much more active than many had thought.

Stock market are looking to open the final week of April looking up after the benchmark S&P 500 added 2.1% last week. In terms of economic data, the week opens on a slow note. Although, Tuesday's home price index should be closely watched, Wednesday's monetary policy meeting for the Fed will make global headlines and 1st-quarter GDP late in the week will have broad implecations.

I would like to say that this may be a relatively calm week for mortgage rates, but as we have seen recently, a lack of important releases does not mean we will not see volatility in the markets and rates. Therefore, I recommend not letting our guard down, particularly if still floating an interest rate.