Mortgage rates closing the week on November 2, 2012, stayed higher despite quite a bit of pressure to go lower as well as the fallout from Hurricane Sandy on the northeastern seaboard. Additionally, the latest labor numbers for the month of October were released which had something for everyone in it to claim victory and denounce the other political party with. As a result, everything stayed just about the same, holding onto the rate rise started earlier in the week.
When the labor numbers came out the initial trading action went a bit sour but those losses were reversed later in the afternoon. Additionally, most of the lenders’ rate sheets posted the same figures as Thursday, so there was no basis for action given rate movement. Given all the pluses and minuses all day long, the 3.375 percent rate on a 30-year fixed mortgage from Thursday carried through and stayed stable through Friday into the market close.
Historically, when a labor report gets released by the federal government, it typically has a noticeable ripple effect across the market. Especially when the report contains any kind of bad news or continuation of the same in a soft or bad economy, mortgage rates end up being impacted. Instead, however, this week’s rates stayed put unchanged with the latest October data release. Going into November, the only remaining big “event” is the President’s election on November 6. The results of that contest are also expected to move rates upward again.
Despite political prognostications, however, nobody seems to have a clear foundation to stand on for a good rate direction prediction. Instead, all the rate soothsayers are staying home, taking defensive positions to be safe just in case.
As noted earlier, Friday closed the week with 30-year fixed mortgages lending at 3.375 percent at their 15-year counterparts at 3.25 percent. 5-year adjustable rate mortgages sat between a 2.625 percent and 3.25 percent range.
Lock advisers continue to preach conservatism for lenders and borrowers. Locks continue to have more rate exposure on the down side with a potential rate drop than benefits from upward protection.