Last Week's Mortgage Rates Recap Last week we ended the week with the same to slightly better mortgage rates than we started, and improved rebate pricing. However, every day had major volatility that greatly affected pricing when consumers locked in their interest rates. We saw swings of as much as .500 in rebate in a day, which on a $200,000 loan is $1,000. We ended the week with risks greatly favoring locking in interest rates.

This Week's Mortgage Rates Forecast Risks Favor: CAUTIOUSLY FLOATING What a difference a weekend makes. When we ended last week, we felt that the trend was for rates to go up even though we had good technicals. Now we feel that due to breaking news from Europe on the EU banking system and debt issues in Cyprus that the outlook for near term mortgage interest rates looks better. However, the technicals show that improvement may not come easy, and that this week will also have lots of volatility.

This week for consumers who are 2 weeks and further from closing, we will look to cautiously float to improved rates, but be ready to lock if things start to turn around. For consumers who are within 7-10 days of closing, we can advise to cautiously float, but cautiously is the key word there. Be ready to lock in at the drop of a dime or the call of your Mortgage Loan Originator. If you are happy with the rate and pricing that is currently being offered, go ahead and lock it in with confidence that you are not going to see a huge rate improvement right after you lock in your rate. We will not likely see drastic interest rate movement, but we will probably see pricing fluxuation throughout the week.

BOTTOM LINE: While the news of Europe and the stock market reaction point to room for mortgage interest rates to improve, things can turn around quickly. It is important to stay in communication with your Mortgage Loan Officer this week and to be ready to lock in these great interest rates if things start to go back the other way.