Mortgage rates are higher again today.
Mortgage rates have effectively returned to pre-“Dubai Scare” levels. When Dubai announced last week that they would miss debt payments it sent shock waves through the global financial markets. Investors traded into “safer” assets which drove bond prices higher and helped push long-term yields lower. Investors now feel comfortable that the Dubai situation is an isolated incident so the flight-to-safety trade is reversing pushing yields higher.
Momentum suggests that rates may continue to creep higher but tomorrow’s jobs report will be the catalyst after tomorrow. Analysts are expecting 125,000 jobs lost for November. Should the number be reported worse than expected we are likely to see rates remain the same or maybe even improve modestly. However, if the economy loses fewer jobs than expected or even creates jobs expect rates to move towards 5.00%+.
The safe money is locking in since rates remain below 5.00%.
We remain in a locking position.
Current outlook: locking