Afternoon Will Bring Better Pricing

Yesterday we ended the day on year highs. It makes sense then that today would begin with profit-taking and a sell of, which it did leading our market about 8 ticks down. Consequently, this morning's opening rate sheets do not represent the highs we were looking forward to. With that said, since the sell off, our market has bounced back to the highs we were so excited about last night.

What does all of this mean for rates... it means if you are looking to lock it would make sense to hold off until this afternoon when your lender issues new rate sheets that have priced in these gains, leading to better pricing and ultimately a lower rate. These rate sheets will be published throughout the day moving forward... if you like what is on the newly published rate sheet I highly recommend locking. These gains are fueled on the falling treasury yield. Should the treasury yield begin to rise, our market will suffer. Currently there is more to lose floating than there is to gain. Lock.


I think it is clear, our market is incredibly volatile, with the bulls and bears wrestling for final word. It will not take much weight to swing us into a sell off, evidenced this morning... it will take a significant event to force our market higher (leading to lower rates)... Country's are collapsing right now so this could happen, and let's not forget about the Iceland volcano threatening European business as usual. With that said, I am not prepared to base my decision on a cataclysmic event. Are you?