Mortgage Interest Rate Update 01.15.2013

The bond market continues to rally today (moderate rally) and as the market claws its way back from the end of the year sell off.   Provided the rally holds/continues we should see rates improve over the next 3-5 days as lenders loosen things up.  Turn times are still long due to the high volume of submissions.  Mortgage rates in general remain stable however some lenders have elevated them to reduce the number of submissions.  Homeowners are still actively seeking to refinance their current loans and the purchase market in California is very active as well.  The Federal Reserve continues it’s support of the Mortgage Backed Securities (MBS) market as it continues to purchase bonds to help suppress mortgage rates.  Some economic reports are pointing to a recovery however we have seen this several times over the last few years only to see things fail come summer/fall.