Rate Update November 11, 2008
Mortgage rates appear to be poised to move higher this morning, at least in the near-term.
Since last Wednesday when mortgage rates dipped lower we have mentioned the importance of the 200-day moving average as an important technical layer of support.
Yesterday afternoon mortgage-backed bond prices did dip below this important level which will likely cause rates to move higher in the next couple days. We are shifting out outlook to a locking stance.
The news in the financial headlines remains grim. In a weak economy a lack of demand for goods often eases inflationary pressure and can even lead to deflation. Over the course of next few weeks we still expect opportunities to arise where rates will dip back below 6.00%.
Current outlook: locking in the near term