Mortgage Rates At A Stand Still
Aug 7th, 2014 (www.mortgagenewsdaily.com)
Mortgage rates have been unusually quiet for the past two weeks, even after a positive employment report and amid rising tension between Russia and Ukraine. This is good news for buyers who need some extra time to lock in a rate.
The July employment report released last week showed the labor market is growing at a steady pace, adding more than 200,000 jobs a month for the sixth month in a row. Normally that would have put upward pressure on rates. Instead, rates ignored the good news.
"The jobs report seems to have lost its luster because you keep getting these revisions and I think people are looking at other economic indicators," says Brett Sinnott, director of secondary marketing for CMG Mortgage.
Growing tension over Ukraine is making investors nervous and affecting the stock market in Asia, Europe and the United States. Surprisingly, mortgage rates have remained immune to these events as well, Sinnott adds.
"Rates have been pretty much stagnant, even with stocks moving and the 10-year (Treasury yield) moving," he says. "The mortgage market seems to be decoupling from bonds as private investors are stepping in. We are kind of getting back to the secondary market."... more