Markets Improved Last Week but Rates Only Lowered Slightly

Mid-East Troubles Continue to Play Role in U.S. Mortgage Rates

Mortgage markets (and rates) improved last week in a week of few economic releases. The one major data point was Retail Sales which came in stronger-than-expected, but markets reacted mildly. The report’s strength was whispered in advance of the actual release; its reading validated Wall Street’s growing faith in the U.S. economy.

Most action last week revolved around the Middle East:

Libya’s internal turmoil continued
Bahrain clashes intensified
Saudi Arabia’s citizens planned a Day of Rage

In response to these events, Wall Street continued its flight-to-quality. Mortgage-backed bonds are now at their best levels since early-February. Mortgage rates have improved 4 straight weeks. Makes for a pretty good time to lock in if you haven’t already.

Unfortunately for rate shoppers in Iowa, the gains have been meager. Conforming mortgage rates have only dropped slightly. FHA have improved more.

If you’re currently shopping for a mortgage, I’d love to help you out. Please send me an email or call me at 515-257-6729 and I can help you get the ball rolling! I love to help out my readers.

Specifically, What Did Those Reports Say?

Each week, I put up an economic calendar of news coming out that following week. Here’s the what actually happened with those reports last week:

What Impacts Mortgage Rates?

If you’re looking to purchase or refinance a home, it’s important to know what moves mortgage rates. There are normally two major things that impact the direction:

Economic News. (Like the calendar above).
International News. (major events, pending legislation, war related news, etc).
Stock Market. (Money flows from equities (stocks) to bonds when it seeks shelter).

What Are Rates Based On?

It’s been mentioned before, but as a common reminder – mortgage rates are only based on one thing, Mortgage Backed Securities (MBS). The only way you have access to these is through live bond quotes.

Looking For Mortgage Rates?

If you’re looking for specifically what mortgage rates are doing, I’d be happy to help with a custom rate quote. Each scenario is different (there are 27 different factors a mortgage rate is determined by). If you or someone you currently know are looking for a mortgage, I’m here to help!

Information without obligation. That’s my policy. If you like what you hear, my team and I would love to help you out with your mortgage! Our contact information is on the top right hand side of this page!