Mortgage rates are improved from yesterday.
Mortgage rates have benefited from strong auction results from the US Treasury’s $84 billion offering this week. Strong demand for long-term fixed income securities helps drive prices of these securities higher (including mortgage-backed bonds); pushing yields lower.
This morning’s Consumer Price Index (CPI) report showed that inflationary pressure in our economy remains weak. Many analysts believe the economy won’t experience significant inflationary pressure until the unemployment rate begins to decline. Since inflation is the primary factor that drives mortgage rates this report is positive.
The bond market will be closed on Monday so there will not be a ‘rate update’.
Current outlook: near-term neutral, long-term locking bias