Rate Update November 18, 2009
Mortgage rates are priced modestly worse compared to yesterday.
After 8 consecutive days of positive gains for mortgage-backed bonds (MBSs) they finally finished lower yesterday and have started off the day lower today. Mortgage rates work inversely with the price of these bonds so over the course of the 8 day rally mortgage rates fell by .25%-.375%. It looks like we may be in for a near-term trend reversal as we speculated on Monday.
Interest rates across the bond market being pressured higher this morning after the Labor Department reported that the Consumer Price Index (CPI) rose by a greater margin than expected in October. Inflation is the primary factor which drives interest rates so this is not surprising.
We will retain a locking bias with fixed rates < 5.00% APR.
Current outlook: locking