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Mortgage Plus

Mortgage Purchase Plus Improvements

RE/MAX Sales Representative Dan Gemus and Mortgage Broker Deenie Stuebing discuss the option of mortgage plus improvements in Ontario. If you&#39 ...

Mortgage rates today, January 29, plus lock recommendations

Financial data that affect today's mortgage rates

Today's early data are mixed, but the most important mover of rates appears to be the likely changes at the ECB.

Major stock indexes  opened lower (good for rates, because rising stocks typically take interest rates with them -- making it more expensive to borrow ) Gold prices  fell another $9 an ounce (for the second straight day) to $1,342. (That is bad for mortgage rates. In general, it's better for rates when gold rises, and worse when gold falls. Gold tends to rise when investors worry about the economy. And worried investors tend to push rates lower) Oil fell $1 to $65  barrel (good for mortgage rates, because higher energy prices play a large role in creating inflation) The yield on ten-year Treasuries  rose 4 basis points (4/100th of one percent to 2.70 percent, the highest it's been in nearly three years.

Mortgage rates today, January 26, plus lock recommendations

What's driving current mortgage rates?

Today's mortgage rates have not changed much -- some up, some down, mostly the same. And it's Friday, not historically the best day to lock.

That's because lenders do tend to price higher (especially later in the day) than they would on other days with the same economic information. It's how they protect themselves in case consumers lock later, and then something happens to drive rates up over the weekend. That's called  "tape bomb" in the industry, named after old-fashioned ticker tapes that used to track stock prices.

Today, we got a couple of economic reports that are not super-important, but they become more relevant when that's all we have.  Last quarter's Gross Domestic Product (GDP) was Experts anticipated an increase of 3.0 percent. But we only got 2.6 percent, nice for rates but disappointing for the economy. On the flip-side, Durable Goods Orders, expected to come in with a .8 percent increase, blew away predictions with a 2.9 percent increase. Nice for the economy but bad for rates.