Mortgage Rates Had a Good Week

Mortgage rates has continued to see the improvement that we have had since the Fed came out with their rate increase.  The stock markets were mixed today and the yield on the 10yr decreased again flirting into 2.4 territory before ending at 2.50%.  All these signs pointed for better rates today, even if it was the costs associated with getting the rate quoted.

The week ended with a couple of reports that were positive, but nothing that would shake up the mortgage bond markets today. All talk was still back on what happened Wednesday, and the shock that there was not going to be any pressure to look for more increases this year.  All this was built into the pricing, and once the announcement was made, everyone who was caught tried to get their positions in the markets covered.  Specifically, investors were expecting the Fed's forecast to show faster rate hikes in the future.  This accounts for some of the move higher in rates in early March.  The Fed's actual forecast turned out to be fairly tame and rates were thus able to move quickly lower.

There hasn't been much movement since the initial reaction to the Fed

In summary, it was a good week for mortgage rates.  We made up quite a bit of ground since Monday. And that leaves us right back towards the middle of the 2.32-2.62 range on the 10yr Treasury bond since the election. I liked one comment that “Bonds posted a green day - in honor of St Patrick.”  It appears for now that our rising rate trend is on hold.  That hardly guarantees a looming rally, but sure beats watching a daily bond sell-off.  Next week's economic calendar shows limited significant events until Thursday.  My hunch is too cautiously float and pull the trigger if you are close to closing.