Mortgage rates are mostly unchanged from yesterday.
As you can see in the chart below MBS’s have managed to rally over 250 basis points in the past 5-6 weeks. Over that time 30 year fixed rates have dropped by .375%.
From a technical perspective MBS’s have appeared ripe for reversal for some time. Here on ‘rate update’ we have remained in a locking position ever since rates dipped below the 5.00% mark. Despite the fact that rates have remained at or below this level we still believe locking is a prudent play.
Australia raised it’s key short-term interest rate by .25% earlier today for a third straight month. Higher interest rates in foreign economies indirectly puts upward pressure on US interest rates.
We remain in a locking position expecting that when MBS’s begin to reverse they will likely do so at a quick pace, pushing rates up rapidly.
Current outlook: locking