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.

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