Mortgage Rates Were Unchanged Today

Mortgage rates were unchanged today as the difference from yesterday was generally insignificant.  Mortgage Backed Securities (MBS) digested two economic reports today: the Consumer Price Index (CPI) and Existing Home Sales.  4.25% remains the most prevalently-quoted conforming 30yr fixed rate for top tier scenarios.  Any changes in quotes from yesterday would only affect the closing costs, and even then, they would be minimal. 

A little volatile early this morning with Ukraine separatists giving up the bodies of those that died and the Black Boxes.  The 10yr increased to 2.50% on the relaxation, even it is just a day or so.  Once the stock market opened better, all buying of treasuries ebbed, but not much selling. The 10yr spent the rest of session very still with little change. US stocks followed Europe’s equity markets and improved. Some of the improvement can be attributed to the slightly better existing home sales in June.   

We don’t expect much movement though this week unless increased global tensions happen. Next week has so much to chew on that unless forced, the interest rate markets are not likely to change much. Next week the FOMC meets, July employment is out and Treasury will auction 2s, 5s and 7 yr notes. The technical picture remains bullish; as noted this morning, the 10 will have to jump above 2.57% for us to change to bearish. We are only bullish because the market itself is saying it, we walk on goose shells trading long however.

In summary,  another flat day for bonds today. We are still hovering over the lower end of the current range and unless we break out of this range to the downside the risks of floating increase with each passing day. If you are closing in the coming week or so two lock your loan.