Today Mortgage Backed Securities (or MBS) closed on the down side by 25 basis points. Though a close on the down side for MBS would normally mean higher costs for rates, we did not see any price changes in the secondary market today. The catalyst for the loss of momentum that mortgage bonds had going was a combination of President Obama stating that there may be a more peaceful option in dealing with Syria than airstrikes, and that maybe the French backed Russian plan to have UN troops confiscate all Syrian chemical weapons could be a solution. The President will be speaking more about that tonight when he addresses the nation. This news gave many investors that pulled money out of stocks during the talks of air strikes, a sense of relief as they sold bonds and reinvested in the stock market. Also Verizon announced that they will be selling approx. $20 billion in stocks tomorrow to raise capital for a buyout of Vodafone. This news may have caused many hedge fund managers to want to free up some capitol to get in on the action.
As of now we are trading in a sideways pattern right between a good level of support, and a strong level of resistance, and with no big news set for release tomorrow I am recommending to cautiously float for better rates.

Please watch the attached video to see where home loan rates are at today. If you would like to talk about your specific scenario or needs, please do not hesitate to call or email me directly.

This statement of current rates is not an offer to enter into an agreement for a loan at a specified interest rate, number of points or both. Current interest rates and discount points are subject to change at any time without notice to you. Stated rate examples were calculated using a $300,000 loan amount, 80% LTV and 720 Min Fico at the stated term lengths. Licensed by the Dept. of Business Oversight under the Ca Res. Mtg. Lending Act.– 431-0421; Rates and charges in the advertisement do not apply to all loans made by the financial institution.

Rob McNelis
Loan Officer - NMLS# 830519
Direct: 619.279.6162
robm@summitmortgage.com
robmcnelis.com
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