Mortgage Rates Not Getting Any Better

Mortgage rates began the day slightly negative even though it tried to rally a little bit in the late morning. Unfortunately, the news from the auction was not taken well as MBSs started to head further into the red and the 10yr followed and closed at 2.29%.  Overall, not that great of day as we have now seen four straight days of moving backwards after the move last week.

Over the past few days, it is not only being easy, but downright logical to dismiss mortgage rate movement as being very small compared to the overall picture.  I mentioned it this morning that we had this same type of movement for nearly three weeks, and after it was all done, we had lost more than we had realized where we were only three weeks earlier.  While that remains true for today's mortgage rates, today's bond market movement suggests a bit more caution heading into the holiday weekend.  On top of that, the rest of the week contains potential landmines for markets in the form of political headlines. 

In summary, the rates have been unable to move any lower after touching the best rates of the year a few days ago.   The people I have talked to today are happy with today’s pricing and are locking their loans.   I am concerned that bonds will continue to slowly bleed resulting in worse pricing in the days ahead.  If you are within 30 days of closing, I think you should go ahead and pull trigger on locking and do not look back.