Mortgage rates are higher this morning following a significant sell-off in mortgage-backed bonds yesterday. You can see on the chart below that since breaking below the 200-day moving average on June 4th mortgage-backed bonds have traded lower all but one day (red lines indicate down days & green lines indicate up days). Over that time mortgage rates have increased by about .25%.
In a speech given Monday night Fed Chairman Ben Bernanke said that the runup in oil prices, “has added to the upside risks to inflation and inflation expectations.” His comments indicate that inflationary pressures continue to mount which will hurt mortgage rates.
Current Outlook: locking