Mortgage Rate Update September 23, 2011

Mortgage rates are slightly worse this morning.

After creating new all-time lows yesterday mortgage rates are reversing higher this morning on technical trading patterns.  The chart below shows how mortgage-backed bonds rallied in the past 5 days consecutively.  Whenever we see acute moves like this it is not uncommon for traders to lock in profits.

MBS's PULL BACK THIS AM

Next week the US Treasury is scheduled to sell $99 billion in debt securities.  The additional supply will make it difficult for rates to improve in the near term.  For now, I will shift to a locking position.

Current Outlook:  locking

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.