What Happened Last Week?
Last week saw some nice gains in the MBS (Mortgage Backed Securities) market which meant better mortgage rates for home buyers. This really was down to the Ukrainian crisis which gave a huge concern for investors who fled to the safety of US Treasuries & Bonds. Typically, when there is a World Crisis looming it can have a huge effect on stocks and causes great concerns on Wall Street. Because of this Investors like the relative safety of Bonds and Treasuries and will take money from the stock market and “park” their funds.
What will happen this Week?
The current crisis in Europe has been labelled as the worst in the 21st Century which does not seem to bode too well. However, there was a market reversal yesterday and we saw hikes in Mortgage rates as Investors essentially sank their money straight back into Stocks. Today saw relatively flat trading on weak news from ADP and everyone is waiting on the ISM reports…..this could be a very negative thing for Bonds if strong data is delivered.
Bottom Line:
Despite the (mostly) positive economic news here at home in the US things are very volatile right now with what’s happening in Europe. The implications of the situation are bleeding into the Markets and are being felt across the world. We are poised for an MBS market reversal which is going to see rates increase. If you want to act fast and lock in your mortgage rate when the time is just right then it is important to be monitoring the markets in real time and not looking for news headlines.
To Success!!!
Information Provided by:
Craig Inglis | Senior Loan Officer
VanDyk Mortgage Corporation | NMLS: 307619 State: LO 11567
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