Mortgage rates are slightly better this morning.
Bad news for the economy continues to be positive news for mortgage rates. This morning it was announced that jobless claims jumped to the highest level since 2001. This is a sign that the jobs market is likely to remain weak for sometime.
Furthermore, Realtytrac reported a 25% year-over-year increase in foreclosure notices for the month of October. An increase in bank-owned property is not welcome news for real estate market which already has a large inventory to work through.
Yesterday mortgage-backed bond prices managed to break back above the 200-day moving average price level. From a technical standpoint this could be very good news for mortgage rates. We will maintain the floating position that we began yesterday so long as bond prices remain above this crucial level.
Current outlook: floating as long as bond prices remain above the 200-day moving average price level