Mortgage Rates 7/23/2015
As I mentioned the other day, Mortgage Backed Securities are just hanging out, so I’d like to look at the technical picture and then just breakdown some real world, what does a 1/8th of a point mean, data. When you look at the graph, you see the 50 DMA has been tough overhead resistance for the past 3 months, so I still have a locking bias.
Now when you look at what 1/8th of a point means, because it sounds like it matters more than it does, 1/8th of a point is basically $7 for every $100,000 financed. You can see in the grand scheme of things it has very little impact on the monthly savings and if it is the difference in someone buying a home or not, we as mortgage professionals have not done our job of advising you, our clients, as to what you should really be paying per month for your budgeted monthly housing payment. Frankly, floating is just not worth the risk or stress consumers put themselves through trying to wait to get a 1/8th of a point better in this market.