Fixed Mortgage Rates are even with yesterday.
Mortgage Backed Bonds look to be trading between a 100 basis point range that consists of the highest level we have ever seen ($102.56) and the current floor of support at $101.56. The last trading range that we were in lasted about 3 and a half weeks and only lead mortgage rates to change by .125% depending on what side of the range they were trading on. Though this current 100 basis point range is much larger, I would be surprised if rates were to change by more than .125% this time as well because of how lenders have been reacting to bond levels in the past two months.
As rates stay within this trading range it is likely safe to float but I will be recommending locking in towards the top of the range. Currently Mortgage Backed Bonds are up 19 basis points on the day so perhaps by early next week if we can keep some momentum will be a great time to lock.
Current Outlook: Cautiously floating