Mortgage Rates Being Pressured to go Higher

Mortgage rates will get no guidance from financial data as there are only a few reports today that have not shaken the markets. China imposed their tariffs on a range of US goods and this is March Employment week. This has put some pressure onto the MBSs (Mortgage Backed Securities), and the 10-year Treasury has seen its yield increase just a tad since the open this morning.

Where Are Mortgage Rates Going?                     

>>> Rates are not moving even with some pressure

The manufacturing data that came out this morning was mostly solid, but was not as much of a boost to drive rates one way or another.  The Mortgage rates have held steady over the past couple of weeks now, which is against the trend that we have seen all year of rates steadily moving higher.  Long-term, we believe that rates will continue to move notably higher so borrowers that act sooner rather than later are likely going to get the better deal on a purchase or refinance.

The first week of every month always has a number of significant economic reports out for release, including the ever-important monthly jobs report out for release on Friday morning. That report is always one of the biggest market movers each month and this time around should not be any different. Investors will be looking at the average hourly earnings reading, with the hope that we will get a reasonable increase.  We have had some weather in the northeast, so whatever number is reported, there will probably be some debate over what comes out.

Rate/Float Recommendation           

>>> Lock now while rates are low

There appears to be little pressure on current mortgage rates as the volatility has picked up in recent sessions.  There is not much data that is expected to push them in the next few days, but anything unexpected geopolitically could move rates one way or another.  Be cautious as we have stated here many times, mortgage rates are still expected to go higher as the year unfolds, so the better deals are likely to go to borrowers that take action sooner rather than later.