Happy New Year!

Mortgage bonds are ending 2014 near highs not seen since May 2013.  This puts mortgage interest rates near lows of this same time frame.  In looking back at most experts’ predictions of where rates would be at this time, it is amazing how many were more than 1% over reality.  In fact, very few would have placed bets that on December 31, 2014 interest rates for a 30 year fixed rate mortgage would be 3.625%.  This has been a blessing for the real estate community, as well as an opportunity for many homebuyers to purchase nicer homes than they would have been able to had mortgage rates been at the 5.5% many predicted.

There is little news to report today, with the most significant being Initial Jobless Claims which came in higher than expectations.  While the market was anticipating 286,000, the actual report showed 298,000 new claims.  This makes sense given that many seasonal jobs are now coming to an end.  Actually, with claims still maintaining beneath the critical 300,000 level, the job market continues to show strength and increased stability.

Mortgage bonds are now just beneath overhead resistance.  In addition, the 10 Year Treasury Note yield has maintained beneath 2.22%.  This is all very positive news for mortgage interest rates.  We anticipate lower levels of trading today, as many investors are preparing for tonight’s celebrations.  The bond market will be closing today at 12:00 pm MST and will be closed tomorrow for the New Year.  We maintain a position where there is little risk in floating but also only minimal gains likely.

My team and I wish you a happy and healthy New Year and hope that 2015 brings great prosperity and opportunity for you.  Thanks for being a part of the City Creek Family!