Fixed mortgage rates are modestly worse this morning for the second trading day in a row.
After rates dipped to 37-year low levels early last week they have gradually crept higher. Technical trading patterns are likely to blame.
From a technical perspective mortgage-backed bond (MBS) prices are now trading up against a floor of support at the 10-day moving average. We remain hopeful that prices will rebound higher off this level of support which would send mortgage rates lower. However, we need to be cautious because should MBS prices break below this floor of support rates would likely move sharply higher.
There is no economic news scheduled for release today so we will be watching the stock market and paying attention to a US Treasury auction later this afternoon for clues as to the future movements of mortgage rates.
Current outlook: cautiously floating