Mortgage rates are higher than yesterday.
Our comment in yesterday’s ‘rate update’ that mortgage-backed bonds (MBSs)”appeared ripe for reversal” ended up being prophetic. MBSs dropped 65 basis points which is the largest one day increase since October 9th. Mortgage rates work inversely with the price of MBSs so we expected rates to be modestly higher this morning.
Looking ahead Friday brings us the all-important jobs report (click this link to understand why this is such an important economic report for mortgage rates).
This morning the payroll company ADP released their monthly jobs report and it showed that private sector employment lost another 169,000 jobs in November. Currently expectations for Friday’s government report are for 125,000 in job losses.
We remain in a locking position.
Current outlook: locking