Mortgage Rate Update February 13, 2014

Mortgage rates are slightly worse this morning compared to Monday.

JANET YELLEN TOLD LAWMAKERS YESTERDAY THAT THE FED PLANS TO STAY ON COURSE IN TERMS OF TAPERING QE.
JANET YELLEN TOLD LAWMAKERS YESTERDAY THAT THE FED PLANS TO STAY ON COURSE IN TERMS OF TAPERING QE.

In prepared testimony on Tuesday new Fed Chairwoman Janet Yellen told lawmakers on Capitol Hill that despite the recent weakness in economic data, including two consecutive all-important jobs report, that the Fed planned to stay the course with tapering of quantitative easing. Mortgage rates reacted by rising by ~.125% on Tuesday-Wednesday.

The pattern of slower than expected economic growth continued this morning with downbeat readings on retail sales and jobless claims.

From a technical perspective mortgage-backed bond (MBS) prices are trading right at the convergence of the 200-day, 100-day, and 25-day moving averages. The next couple days will prove very significant in terms of setting the direction of interest rates for the next couple days. If MBS prices can manage to bounce higher off these levels then rates should remain at multi-month lows. However, if they continue trending down then rates will get back on the longer-term path of moving higher.

I have been in a locking stance for some time now and I will maintain today.

Current Outlook: locking

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.