Mortgage rates are priced worse this morning.
Stocks are rallying this morning on renewed optimism about the economic recovery following better than expected earnings outlooks from a couple corporations. The Dow Jones Industrial Average is currently up over 130 points which is pressuring mortgage rates higher.
The economic news for the day was a mixed bag in terms of it’s impact on interest rates. The US trade deficit was reported higher than expected (bad for rates) but the National Federation of Independent Businesses reported that nation’s small businesses remain pessimistic about the next 12 months (good for rates).
Yesterday’s $35 billion in 3-year treasury notes was met with strong demand as expected. Today the US Treasury will follow that up with $21 billion in 10-year notes. Due to the longer duration today’s auction probably won’t draw as much attention at these low rates. Click HERE to understand how treasury auctions can impact mortgage rates.
Despite the rally in the stock market mortgage rates remain resiliently low. I don’t feel that locking is necessary.
Current outlook: floating