Mortgage rates are worse this morning.
Stock markets around the globe are all trading higher today on better than expected economic news. Manufacturing data in Asia and here in the US showed better than expected growth in March. Good news for the economy is often bad news for mortgage rates.
Mortgage-backed bond (MBS) prices are now at the lowest level since October of last year. And with the Fed having exited the market I don’t see a compelling reason why mortgage rates would move any lower.
Tomorrow brings the all-important jobs report. The financial markets are closed tomorrow but based on recent trading it seems as though traders have already priced in a positive report.
I’ve been recommending a locking position for some time now. I still think locking is the safest play.
Current outlook: locking bias