Mortgage Rate Update March 3, 2011

Mortgage rates are slightly higher this morning.

I’ve been recommending a locking position now for the last week and although I may have pulled the trigger a couple days too early I certainly think it is the most prudent stance now.

Mortgage rates are getting pressured higher on stronger than expected jobless claims figures.  The weekly figures showed that the number of people filing for jobless claims dropped to the lowest level in almost 3 years.  This bodes well for the economy and for tomorrow’s all-important jobs report.

Current expectations are for 200,000 new jobs created in February but as we know the actual figure is likely to deviate from expectations.  If the number of new jobs is better than 200,000 we’d expect rates to continue move higher.  If the report fails to beat expectations I think we are likely to see rates stabilize but not move lower.

I will remain in a locking position.

Current outlook: locking