March 30th, 2014 12:45 PM by Jackie A. Graves, President
Mortgage rates finally experienced a correction to the 5-day winning streak that had carried them lower after last week's spike. On a slightly unsatisfying note, the winning streak was never quite able to erase last week's losses and by the time Friday's weakness was factored in, rates are right in the middle of the recent highs and lows. When adjusted for day to day changes in closing cost, rates moved 0.03% higher Friday on average. That leaves the most prevalently quoted conforming 30yr rate for top-tier scenarios (best-execution) at 4.5%, with a few lenders still close to 4.375%.
Having strung together so many days in a row without moving higher, Friday's correction was increasingly likely. The thing about those sorts of corrections, however, is that they don't necessarily connote a full-on SHIFT in the other direction. To be clear, it is risky to PLAN on such things happening, but next week has a good amount of economic data and the extremely important Employment Situation report on Friday. If the data is weaker than expected, rates don't necessarily have to move higher simply because they moved lower 5 out of the past 6 days. If the data is balanced or stronger, rates likely won't go any lower.