Mortgage Rate Update May 18, 2015

Mortgage rates are mostly unchanged from last Thursday’s ‘rate update’.  In fact, mortgage rates improved on Friday but this morning are starting the week higher.

There are multiple economic reports related to housing scheduled for release this week.  Tomorrow we’ll get a look at housing starts and building permits.  On Thursday we’ll get a reading on existing home sales.  On Friday the Consumer Price Index (CPI) will be released which is significant because we know the Fed is keeping a watchful eye on inflation.  Speaking of the Fed, the minutes from their last monetary policy meeting are scheduled for release on Wednesday.

We are going to learn a lot about the housing market this week.
We are going to learn a lot about the housing market this week.

From a technical perspective the market for interest rates still looks attractive. The yield on the US 10-year treasury remains below the important 2.25% level and mortgage-backed bonds are trading above their 200-day moving average.  As long as these two conditions hold I am going to recommend floating.  If this should change I will shift to a locking bias.

Current Outlook: 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.