Rates Worsen

If you worked half a day today and had access to market feeds this morning you probably left feeling pretty good about the direction our market was heading. Then, well... then it happened.

Currently down 4 ticks on the day, this unfortunate turn for the worse in our market has lead to worse pricing. Moreover it has encouraged banks to hedge on their rate sheets which leads to worse pricing than the market is actually offering.


Above is a five day snapshot of our market. I have drawn in the arrows all three representing possible trend lines, although I will be the first to admit the red line is highly unlikely. The yellow trend line is possible but less likely at this point in time. The green trend line is what our market seems to be following.

we should be preparing clients for worse pricing, and encouraging those in escrow to lock rates to protect their current market position.

All things considered proceeding with caution and keeping a close eye on rates is the winning formula this week.

Any specific questions we welcome. Leave a comment.