Fixed Mortgage Rates are even with yesterday.
Mortgage Backed Bonds have erased the 31 basis point gains from yesterday and then some in this morning’s early trading. The bonds are currently down 78 basis points and things aren’t going to get much better today as the Treasury will auction $19 billion in 10-year notes. Again, this added supply could move the market today and if the added supply is not well accepted, the movement will be in the wrong direction.
Looking at where Mortgage Backed Bonds are technically, the next level of support is about 120 basis points below where we are currently. This level is about where bonds were in November when this rally started and the “refi boom” took off.
Current Outlook: Locking