Mortgage Rate Update April 18, 2013

Mortgage rates are unchanged this morning.

It’s been a relatively quiet week in terms of new economic releases.  The European debt crisis is ongoing but officials there have calmed the storm for now.  The tension between the US and North Korea has also diminished.  Most of the domestic economic news out this week has disappointed which is has helped keep mortgage rates at multi-week lows.

From a technical perspective interest rates are at an interesting spot.  The 10-year treasury yield is currently ~1.70%.  If the yield can remain below this level for a couple more days then 1.70% will become a level of resistance and we could see mortgage rates move even lower.  However,  the Relative Strength Indicator (RSI), which measures momentum in the market, suggests that interest rates are ripe to reverse course and move higher.

04-18-10yr chart

Now that the 10-year treasury has broken below 1.70% I recommend floating until the 10-year treasury yield moves back above 1.70%.  At that point it would be wise to lock quickly.

Current Outlook: floating