Mortgage Rates Unchanged

Mortgage rates today are almost unchanged from yesterday's as market participants await tomorrow's highly-important reporting.  The Labor Departed that initial claims for state unemployment benefits increased 21,000 to a seasonally adjusted 231,000 for the week ended March 3. That's 11,000 more than analysts expected, which would be good for mortgage rates if anyone cared. But market participants tend to ignore this report when it precedes the much-more-important monthly Employment Situation report, which is due tomorrow morning.

Where Are Mortgage Rates Going?                     

>>> Rates are sideways today

News from across the pond that the European Central Bank is no longer saying that they will increase the pace of its bond-buying program if the economic environment deteriorated is affecting U.S. market this morning.

Financial market participants have moved more into bonds as a result, pushing down Treasury yields. The yield on the 10-year Treasury note (the best market indicator of where mortgage rates are going) is down about three basis points to 2.85%. Mortgage rates typically move in the same direction as the 10-year yield.

Freddie Mac’s Economic & Housing Research Group said in its weekly report that “the 10-year Treasury yield has been bouncing around in a narrow 15 basis point range for the last month. While the yield on the 10-year Treasury is currently below the high of 2.95 percent reached two weeks ago, mortgage rates are up for the ninth consecutive week (which in my opinion, thought they had already peaked). The U.S. weekly average 30-year fixed mortgage rate is at its highest level since January 2014.”

Of course, this is old data as rates are looking to move lower today.

Rate/Float Recommendation           

>>> Lock in a rate soon before they go back up

Mortgage rates have now moved higher for the ninth straight week according to Freddie Mac’s report today.  Applications filed for U.S. unemployment benefits came in at 231,000. That’s up 11,000 from the prior reading (which was a 49-year low). If you want to minimize the risk of getting a higher rate and paying more, then you should consider locking in a rate as soon as possible.