Mortgage Rate Update March 26, 2015

Mortgage rates are slightly worse than they were on Monday.

As I warned in Monday’s ‘rate update’ the US Treasury’s fresh supply of $90 billion in new debt has put upward pressure on rates this week (CLICK HERE to understand why).  Yesterday’s $35 billion auction of 5-year notes was met with soft demand and as a result yields moved higher.

The economic data of late has been a mixed bag.  Yesterday’s durable goods orders disappointed investors while this morning’s jobless claims figures was slightly better than expected.  The choppy results fuels volatility which is already present due to uncertainty surrounding when the Fed will begin to raise short-term interest rates.

Geopolitical tension has arisen in Yemen where Saudi Arabia has launched airstrikes against militant groups.  The conflict has caused oil prices to spike higher.  Should the situation escalate there we could see mortgage rates benefit via a “flight-to-safety” in the financial markets.

At this point the safer play is to lock in.

Current Outlook: locking