Fixed Mortgage Rates are even with yesterday.
Mortgage backed bonds have broken through the ceiling of resistance which is the 25 day moving average. This is good news thus far for Mortgage Rates having a chance of improving this week if they can stay above current levels. The 25 day moving average will now become a floor of support and if bonds can back to the trading range that we had experienced for the last month or so, we could see price improvements of over 50 basis points, which can equate to Mortgage rates slipping by up to .25%.
Though inflation doesn’t seem to be a concern right now with the state of the economy, it will be an important thing to keep an eye on during months to come because of the large amount of stimulus that is being injected into the economy. Analysts know that someday this will catch up with the economy and when it does, you can be sure that rates will increase from their current low levels. I mention this today because the Consumer Price Index figures were released today at .2%, which were just higher than expectations of .1%. Everyone realizes this isn’t much trouble now, but if it keeps beating expectations it will be something to worry about possibly.
Current Outlook: Floating