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11.12.15 Mortgage Rate Update

November 12th, 2015

Mortgage rates are slightly lower this morning as Mortgage Backed Secuirties (MBS) are near unchanged as they try to stabilize near the July lows.  Mortgage rates have risen more than 0.25% since the low seen on October 26.  Several factors are contributing to the rise in rates.  

The economic reports released today the Weekly Initial Jobless Claims were unchanged from last week and are having no impact on rates.  Later today the Treasury will auction $16B 30-Year Bond which could have an impact on rates later in the day.  The main factor pushing rates is the possibility of a rate hike by the Fed in December.  The Fed Fund Futures now show a 66% chance of a rate hike in December, up from 39% a month ago.

We will continue to watch the markets and report anything that copuld have a short or long term impact of the direction of interest rates.