Mortgage rates moved higher this morning.
In yesterday’s ‘rate update’ we stated, “We expect that bond prices will experience a “break-out” in the next few days. A “break-out” is when bond prices move sharply above or below technical trading levels and mortgage rates often move sharply as well.”
Indeed this occurred yesterday afternoon when bond prices broke below the 200-day moving average. From there bond prices feel as much as 70 basis points at one point which is why mortgage rates are higher today.
Tomorrow the monthly jobs report will be released. In the past two months the jobs report has improved from the dismal numbers we saw in February. That said, we think the report will continue to improve which will put more pressure on rates to move higher. We recommend that our client lock in ahead of this report.
Current Outlook: locking