Mortgage Rates Start Out Lower Today

Mortgage rates have started out lower today.  For the past few days, we have seen positive MBS data, and combine that with the 10yr dropping in yield, all bolds well for those who have floated or waiting for closings with long wait times.

This morning’s reports showed Consumer Sentiment February reading higher than what was forecasted.  Even though it was just a small margin, it was a very solid reading - not a block buster.

New Home Sales climbed higher but at a slower than expected pace. New Home Sales in January hit 555K (or a MOM gain of 3.7%) which was lower than market expectations of 570K units.

Oil prices have been falling this morning (anti-inflationary) as inventory levels have risen.

Overseas, Euro systematic risk (France, Italy and to a lesser extent Germany) have caused German bund yields to contract (lower rates) as investors seek a safe haven as risk over elections weigh on their positions.

President Trump will give the first address by a president in his first year since Ronald Reagan to an annual gathering of conservative activists (CPAC). Any comments about tax or stimulus will get some attention but most likely, the markets will get more ammo from Tuesday's address in front of Congress.

I expect mortgage rates to improve slightly today with relatively low volatility. The wild card is President Trump's address to CPAC, if he pushes a "protectionist trade agenda" it will be positive for mortgage rates, but if he speaks more about lower taxes and regulations then that could push mortgage rates higher.  My suggestion as always, test your risk levels and lock.  Rates could go lower, and I am sure that my investments will improve – the questions is when?