Mortgage Rate Update January 19, 2011

We switched our outlook to locking yesterday and the move proved timely as rates are worse this morning.

Despite the fact that housing starts fell by more than expected in December, housing permits, which signify future construction activity, increased by 16.7% according to the Commerce Department.

In other financial news Goldman Sachs (GS) reported worse than expected Q4 earnings today.  The financial bellwether saw declines in most of it’s lines of business.  Stocks are trading lower on the news which is helping to stabilize rates.

Mortgage rates continue to move inside a tight range that I won’t be surprised to see hold until the next jobs report due out on February 4th.  Since mortgage rates are currently at the lower end of the range it would make sense to lock in the near-term.  

Current outlook: locking