Mortgage Rate Update February 5, 2015

Mortgage rates are about .125% worse from where we started this week.

US interest rates have worsened slightly this week on easing concerns over Greece and the European Union.  This story is far from being “out of the woods” but currently sentiment is unfavorable for mortgage rates.

As I’ve explained before on ‘rate update’ mortgage rates tend to follow fluctuations in the yield on the US 10-year treasury note.  Currently the US 10-year treasury note is trading right at an important technical level at 1.78%.  Dating back 12 months the lowest yield on the 10-year treasury note was 1.673% (Feb. 2, 2015) and the high was 2.79% (April 3, 2014). The point here is that we have a lot more to lose than we have to gain moving forward.

Tomorrow we get the all-important jobs report for January.  The markets currently expect 235,000 new jobs to have been created last month.  Generally a number higher than expectations will push rates higher and vice versa.

The jobs report is very difficult to predict and given that we have more upside risk than downside to gain I recommend locking in today.

 

Current Outlook: locking