Mortgage Rates Continue Climb

Mortgage rates continued to climb a little off their lows from last week even with no significant push from any data releases or stories across the oceans.  For many borrowers, the changes will only be seen in the form of higher closing costs with the most prevalently quoted conforming 30yr fixed rate for best-case scenarios still favors 4.25% as 4.125% is now leaving its mark behind.

The bond and mortgage markets are holding minor positive technical patterns but they are loosing momentum after the 10yr note spent all of last week unable to break below the strong resistance at 2.60%/2.58%. It is time to step back now after the strong decline in mortgage rates over the last couple of weeks. We don’t expect the 10yr or mortgage rates can fall more unless the Ukraine situation gets worse or the economic data scares stock investors. We do however remain long term bearish for the stock market, and expect a major decline but it isn’t going to happen as long as the Fed forces investors to step out farther on the limb.

Locking has made good sense as rates have moved lower over the past several weeks, largely because we were approaching the lower end of a range that has been intact for more than three months.  Borrowers who were inclined to float their rate into that strength would have ideally seen that the last few days may now trigger the LOCK that is needed if within a few days/weeks of closing.

In summary, bit of a slow Monday as rates stayed in line with recent ranges, although a tad higher than last week's lows. The absence of geopolitical or economic motivation kept us from continuing last week's rally. No compelling reasons to move sharply higher or lower at this point, we'll see what Ukraine Drama holds in store later this week, plus Thursday's important inflation data. Close to closing? LOCK!  Remember what I have said many times in this blog, Pigs Get Fat and Hogs Get Slaughtered!