Mortgage Rates Weekly Update for November 26, 2018
Mortgage Rates Update for November 26, 2018 by John R. Thomas with Primary Residential Mortgage, Inc. in Newark, Delaware. Get advice on Locking or Floating your Mortgage Rate to start the week as well as the latest housing and finance news updates. John Thomas is the Branch Manager, a Delaware Loan Officer and the author of the best selling book, Your Guide to Buying Your First Home in Delaware. Call 302-703-0727 for a Rate Quote or Apply Online for Rate Quote
Mortgage Rates have rebounded since hitting a 7 year high in November, helped by a sell off in the stock market which continued on Friday. If you look at the Fannie Mae 4.0% Mortgage Bond Chart below you can see mortgage bonds have been trapped in a tight trading range this past week between the 25 day moving average (Support) and the 50 Day Moving Average (Resistance). If bonds can break above the 50 day moving average they have some room to move higher which would move mortgage interest rates lower. When we looking at the trading technicals there has been an overbought sign on the stochastic chart and if we see a negative crossover confirm it could mean a selloff in mortgage bonds which would move mortgage interest rates higher. We are recommending CAREFULLY FLOATING Your Mortgage Rate to start the week to see if bonds can break above the 50 day moving average but if we see bonds test the 25 day moving average or we see a crossover on the Stochastic chart, we would quickly switch to a locking stance.