Mortgage Rates A Little Bit Higher

Mortgage rates were a little bit higher, but that was to be expected after what we saw yesterday.  Basically, what everyone is doing is waiting for the Friday numbers on employment from the government.

This morning ADP reported its estimate for private jobs were better than what was anticipated, but as I have mentioned many times, there is not much direct correlation to the BLS data however. The July ISM services sector index was a little weaker, while the employment component dropped.  This reading, in contrast to other advance indications, is not pointing to much strength for Friday's employment report.

Mortgage applications declined again last week. Mortgage rates have not changed much but possibly summer heat and early returns to school were a drag.

Keeping up with the Fed on CNBC - Dennis Lockhart, Atlanta Fed turned on his recorder to rewind previous comments. "At this point, I don't rule out a rate increase at the next meeting or later in the year. We just have to wait and see how the data come in. The situation is maybe a little bit ambiguous, but I can imagine conditions in which we could have rate hike."  With each speech or interview there is less interest in what Fed officials have to say. The Fed’s outlooks and officials’’ comments are irrelevant now after years of mis-steps.  

I expect the key indexes to enter a big decline in the weeks ahead. Not willing to say where I believe the stock market is headed, too difficult to handicap the greed of investors that continue to ignore the underlying fundamentals.

In summary, I feel there is more to risk than to gain by floating if closing within 15 days.  So I think locking here is the wise move. Barring the unforeseen, it appears mortgage rates are comfortable in this current range.  I believe we are in the midst of an uptick in rates that will lead us to a bigger down tick in the future....one move up, two moves down.  I am a firm believer that we have yet to see the bottom.