Mortgage Rate Update February 9, 2015

Although mortgage note rates appear unchanged from last Thursday the accompanying closing costs are higher so in fact pricing has worsened.

In advance of last Friday’s all-important jobs report I issued my reasons for why I thought it made sense to lock.  I don’t always call the right shot but this time I did as pricing worsened for mortgage rates following the release of the report.  In case you missed it the report showed +257,000 new jobs created last month and revised higher previously released numbers for November and December.

This morning interest rates are slightly better off.  Over the weekend newly elected Greek Prime minister remained defiant against the European Union (EU) as he tries to renegotiate the Greek bailout package.  The fear is that these negotiations could spiral out of control and cause Greece to exit the EU in a disorderly fashion.  Uncertainty tends to help US interest rates.

The US economic calendar is fairly light this week with the highlights coming Thursday (retail sales) and Friday (consumer sentiment).

From a technical perspective interest rates are trading within a broad range of support and resistance.  This means we are more likely to see continued volatility this week.  For now we can float but we need to be prepared to lock in case rates move higher.

Current Outlook: floating