Mortgage Rates Look to Trend lower

Mortgage Rates likely to lower this week.

Good morning and happy Monday to all.

Today brought us the open I called for on Friday. Fridays close at the top of the day and over a critical point of 100 (FNMA 4.0) coupon along with Asia's overnight flight to quality in long bonds are driving this mornings open.
The news is also being pushed by the S&P downgrade of Italy and we also saw, for the first time in 30 years, Spain see a massive shift in voters who fled the Socialist Party and did not re-elect its sitting Prime Minister.

Fridays closing number was 100.156 Today we saw a +16bps gap up open and another +6bps since open. We are currently at 100.375 (FNMA 4.0) coupon and should likely bring us appx .25 improvement to price NOT rate.

The 10Y is also back to its lowest levels since early December regaining all its lost ground from last Wednesday to put the 10Y yields back near its low levels since December at 3.106.
We have some driving news being released this week.

Tues 5/24
New Home Sales
2-yr Auction

Wed 5/25
Durable Orders
5-yr Auction

Thur 5/26
GDP
7-yr Auction

Fri 5/27
Core PCE
Income
Pending Sales

Unless there is some unexpected news from this, I see rates continue to improve slightly and we could get to a point not seen since late November 2010!
The time to make it happen is NOW! Low prices favorable finance rates and requirements (over what is potentially coming based on current talks) give this the best looking window of opportunity top buy a home in over 40 years (based on the affordability index).
If you have a loan scenario or are looking to buy in Colorado please feel free to call me to discuss this and or any strategy you may want to look into for being or extending your reach in investment properties.

David Shamansky
US Mortgages
1745 Shea Center Dr 4th Floor
Highlands Ranch, CO 80129
720-524-8020
www.usmortgages.com
NMLS#245170 Equal Housing Lender
*Above commentary is my personal review and opinion based on facts and data I read daily on both a global and US economic scale. It is not a guarantee on rates improving or declining.