Mortgage Rate Update January 26, 2017

Mortgage rates are not having a great week.

As I’m sure you’ve heard the Dow Jones Industrial Average topped 20,000 yesterday and managed to close above this psychological level.  The Dow is extending those gains today.  When stocks rally it attracts new capital which is often sourced from the bond market.  Weakness in the bond market is what pressures interest rates higher.

It took only 42 days from the Dow to reach 20,000 from 19,000.  This was the second fastest 1,000 rally in Dow history.

Unfortunately the technical trading patterns have eroded and the outlook for mortgage rates is not extremely optimistic.  Rates have risen this week and they may get worse in the near future.

Current Outlook: locking