Today's Interest Rate Market Forecast

With the government shutdown in place and the debt ceiling crisis as the main focus, the markets are getting more nervous about if the US will default.  It is likely that we will end the day with very little overall change, however expect to see an up-and-down market movement as we progress through the day.  It is not likely that there will be any break in the impasse in D.C. today, however we are nearing the 17th, so expect something soon and be ready for when that day does come.  Work closely with your Most Trusted Mortgage Loan Professional to stay ahead of lender reprices for the worse in case of negative MBS (Mortgage Backed Securities) reaction.

Last Friday saw the MBS market end the day with a deterioration of 22 basis points, meaning that rates may deteriorate about .125% depending on the lender, or rebate pricing should deteriorate if the rate remained stable.  Depending on your lender, you may have experienced interest rate reprices because of the volatility that we had during the day.  Floating an interest rate is ok to do as long as you are working closely with your Mortgage Loan Professional and heeding their advice.  Be ready to act quickly on the news that the parties in Washington D.C. may be close to or have come to a compromise and ended a government shutdown.   

If you want to know the benefits of locking your rate today versus floating, simply contact a Trusted Mortgage Loan Professional who has access to real time Wall St. data and instant market alerts with breaking news.

Today's Daily Rate Forecast has been made available to you through your Mortgage Loan Professional, who is available to answer any questions you may have about this information or your unique loan scenario.

- Michael Corboy

www.specialtyfinancialmtg.com