Mortgage Rates Holding Steady

The bond and mortgage markets are seeing little movement thus far this morning after the increase in rates and declines in prices yesterday. The 10-year Treasury has broken the resistant level and is above 2.80%. There is no increase in tensions over Syria and trade fears ebbed. Nothing resolved across any of the issues but they are not getting worse.

Where Are Mortgage Rates Going?                     

>>> Rates are holding after yesterday’s movement

We started seeing some more reports about bond market weakness yesterday.  In a nutshell, we have been tracking a linear, well-behaved, modestly-positive correction since February 22nd to wondering if that correction just ended.  We are merely "wondering" because we have not seen enough weakness to confirm it yet.  This has happened before, and then the markets correct itself – but will it do it again this time?

There is not much important and market moving news today so we have another mud battle to focus on. Next week James Comey the fired attorney general by Trump will release his memoirs; in the meantime he is making the rounds promoting it. Overall it is a serious bashing of Trump, referring to him as a “mob boss”. In response Trump tweeted Comey as a “weak and untruthful slime ball,”…… “It was my great honor to fire James Comey!. Well always something to muse over when geopolitical or economic concerns are off the daily table.

Rate/Float Recommendation          

>>> Little reason to float, unless you have a crystal ball

The weekend ahead should keep the bond and mortgage markets generally quiet today. We do not see increases in rates or declines in prices yet, but we do not expect major improvements either unless the stock market experiences more strong selling. Technically the 10-year Treasury has lost near term momentum and back above key moving averages.

Inventory is low, and there are a number of buyers who want to move and are fearful of rates.  Rates are on track to move higher as the year unfolds so most borrowers will be better off locking in a rate soon.  If you have any further questions, give us a call or visit our website at Call TheMoney Man.