Mortgage Rates Showing Little Movement

Mortgage rates are at the highest point we have seen in the last month, but truthfully, that is not much as where we were at only a few weeks ago.  Once again there was not too much to report today.

The stock market was weaker today after being stronger each day for the past two weeks.  Nothing to worry about, every market has a pause in any big directional move. Tomorrow has little news and next Tuesday the FOMC meeting begins. There is some chatter at the CME that the central banks have now capitulated to global equity markets as the measurement of economic conditions now and going forward. Not sure I agree but the Fed and other central banks with all of the stimuli have seen only minimal results and their forecasts have been horrible the last three years, being revised lower almost every quarter. Stocks though should not be any bellwether on the economy; the equity world is being propped up by stock buy-backs and valuations are exceeding the previous norms. Goes to the issue that there is not anything on the minds of investors but chasing any returns well than safety concerns presently.

This morning in early trading the 10yr note yield increased to 1.62% from 1.59% yesterday but this afternoon fell back to 1.56% on the minor drop in stocks.  MBS prices were down early as well when I sent out my morning report, but turned positive by the end of the day.  With the weekend ahead, I do not expect prices of MBSs will decline much but also not expecting much improvement unless there is concerning news from Europe. As we all know the world can be hit at any time with isolated chaos, so far markets have not been reacting to them. The chant at the moment in markets is Risk On, meaning money is moving away from geo-political concerns and terrorist related events. Next Monday the Democrats will have their week, not likely there will be the fireworks the Republicans lit this week.

I know that I have suggested to float cautiously, but these rates are still near all-time lows and should be locked up if you are closing in the next few weeks.