Mortgage Rate Update April 24, 2014

Mortgage rates are unchanged from Monday.

Mortgage rates remain near 2014 low levels thanks to ongoing uncertainty in Ukraine.

THIS Wall Street Journal article is reporting that Russian forces have begun military exercises on the Ukrainian border seemingly preparing for a conflict.  Geopolitical uncertainty encourages investors to seek “safe-havens” which creates demand for US fixed income securities.  As a result US interest rates move lower.

Monthly durable goods orders were reported earlier today and the release showed stronger activity than was anticipated.  Good news for the economy can be bad news for mortgage rates.

The economic calendar is light tomorrow which means rates will likely react to the stock market and technical trading patterns.  There are many on Wall Street who think the stock market is overdue for a correction which would likely help rates improve.  However, no one knows with certainty if and when a correction will take place.  In the near term mortgage-backed bonds have a favorable outlook for a technical perspective so I will maintain a floating position into tomorrow.

Current Outlook: floating