Mortgage rates are slightly higher this morning than they were yesterday due to a sell-off in the bond market yesterday afternoon.
There is not economic data set for release today so we will be watching the stock market and technical trading patterns for clues as to the direction of mortgage rates. Stocks are currently trading lower in response to further concerns regarding bank write-downs & oil prices. Weakness in stocks typically helps mortgage rates move lower.
However, technical trading patterns have us concerned because bonds are trading up against a ceiling of resistance. Should bond prices break through this resistance it would be a sure sign that rates would move lower in the near term. For now we remain neutral.
Current Outlook: neutral