Mortgage Rate Update November 25, 2013

Mortgage rates are unchanged from last week.  Please note ‘rate update’ will not be reporting this Thursday.  Happy Thanksgiving!

Holiday shortened weeks always open the door to volatility.  With many traders out of the office it leaves fewer buyers and sellers in the marketplace and therefore the possibility of greater price swings.

Despite the shortened week the economic calendar is packed with data that can influence the direction of mortgage rates.  Already today the National Association of Realtors reported weaker than expected pending home sales for October.  The data is not terribly surprising since the government shutdown likely pushed some sales into this month.  Annualized home sales still remain on pace to be higher than last year.

More housing data will be released tomorrow including the S&P Case-Shiller home price index.  We’ll also get reads on consumer sentiment and durable goods before the week is out.

From a technical standpoint mortgage-backed bonds (MBS’s) are treading along the 50-day moving average.  If MBS prices can break above this technical level we could see rates improve by ~.25%.  However, MBS prices could also collapse just as easy.  For now we’ll remain in a locking position.

Have a safe holiday and ‘rate update’ will be back on Monday, December 2nd.

Current Outlook: locking