Mortgage Rate Update December 23, 2013

Mortgage rates are modestly better compared to last Thursday.

In last Thursday’s ‘rate update’ I shifted to a near-term floating position with the expectation that rates would improve in the near-term based on the technical outlook in the mortgage-backed bond (MBS) market.  The forecast proved accurate but unfortunately it doesn’t change my longer-term outlook which calls for mortgage rates moving higher.

According to figures released by the Commerce Department earlier today personal incomes and consumption spending rose modestly last month and in line with market expectations.  The report also showed that inflationary pressure remains tepid which is a good sign for mortgage rates.

happyholidaysAs you might imagine the remainder of the week is expected to be relatively quiet on the news front.  The bond market closes early tomorrow and is closed for the entire day on Wednesday.  ‘Rate update’ will come out today and Friday this week before returning to a regular schedule next week.  Have a fabulous holiday week!

Looking at the technical signals today interest rates appear vulnerable so I will shift to a locking bias.

Current Outlook: near-term floating

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.