Mortgage Rates Continued Slightly Higher Today

Mortgage rates continued slightly higher today.  This had more to do with a market-based continuation of yesterday's momentum than it did with any of today's data and events.  The most prevalently quoted conforming 30yr fixed rate for best-case scenarios remains at 4.25%.

It is another trading session with both bonds and stocks moving in the same direction as both the DJIA and the S&P 500 finished at record highs.  Our intra-day trading channel has held – so far – with Mortgage Backed Securities (MBS) confined to trade at the top of our trading channel.  We have seen the roller coaster during the day be as high as it is low, making the swing be a knot in our stomachs as we try to determine what is the best advice we can provide to those looking to purchase or refinance their home.

We did have a big plate of data to digest today, and in the long run, we did see the interest rates move in a negative manner as it has done earlier in the week.  The 10yr did move a tick higher today, but has stayed below the new level and is at 2.48%.

In summary, recent rate improvements took a breather today. No telling if this is a trend yet but next week sets up as a “high risk” week with the rate decisions from the ECB, and the all-important Jobs Report on Friday. If you seriously evaluate the Risk / Reward tradeoff for mortgage rates into next week you probably would look at locking in your interest rate now and especially if you are on a short time frame to closing. Floating is a little risky right now in my opinion.