Mortgage Rates Moving Lower Now

Mortgage rates moved lower at a healthy pace today, more than erasing the past two days of weakness, but leaving most of last Thursday's weakness intact.  Some of the gains were attributable to today's much weaker than expected reading on New Home Sales earlier this morning.  Downbeat economic data is typically positive for bond markets which results in lower rates.  The most prevalently quoted conforming 30yr fixed rate for best-case scenarios still remains at 4.50%, but lower rates are knocking on the door. 

Today's strength runs counter to the recent trend.  Most of the time in 2014, when rates have risen from 4.25%, they've proceeded to 4.625% before coming back to the 4.375%-4.5% range.  This time, they never even left that central range. 
Mortgage Backed Securities had early support over concerns in the Ukraine and Russia which have been steadily growing after our brief reprieve due to Thursday’s “peace” accord.  The big miss in New Home Sales were also a slight positive for pricing.

In summary, unless there is a dramatic move up or down in the stock market, rates are stuck in a sideways grind. Today's Treasury auction results were not the best, but it did not keep yields from dropping and mortgage bonds from moving higher after not doing much the last few sessions. If you have not locked yet, I would continue to float.