Mortgage rates have improved this morning from yesterday’s levels.
Last week when stocks dipped investors found a “safe-haven” in US treasuries when ordinarily MBS’s would also benefit which caused mortgage rates to rise. However, investor confidence is improving for mortgage-backed securities (MBS’s) as the credit markets thaw which is why mortgage rates are now lower.
Looking ahead, stocks are trading lower this morning on weak earnings data which may help rates move even lower. We continue to stay focused on technical trading patterns. MBS prices topped the 200-day moving average yesterday and if they can hold this level today we’ll remain floating. If not, we’ll need to lock.
Current outlook: floating so long as MBS prices remain above 200-day moving average