Mortgage Rate Update July 25, 2013

Mortgage rates are slightly worse this Thursday morning and I expect they will continue to trend higher before any possibility of moving back lower.

The roller coaster for mortgage rates continues this week.  From the beginning of May through June 30-year fixed mortgage rates rose by ~1.25%; the sharpest increase in that span of time in over 50 years.

From the beginning of July to current Fed officials have scrambled to calm the financial markets and mortgage rates eased by ~.25%.  However, that downtrend appears to be over and rates appear poised to increase higher in the coming days.

A look at the US 10-year treasury yield, which mortgage rates tend track, displays this move.

At this point I expect technical trading patterns to overshadow economic data so I will remain in a locking position.

Current Outlook: locking bias