Mortgage rates are better and worse this morning (ARM’s improved in pricing while FHA fixed rates worsened).
Despite steadily improving economic data issued over the past week and a half gold has hit an all-time high. Gold is another source of “safety” for investors seeking a “flight-to-quality” trade.
Unfortunately interest rates have not benefitted as much. Both the 10-year Treasury note and mortgage-backed bonds (MBS’s) are trading up against technical resistance.
Tomorrow and Friday will feature significant economic data including the jobless claims, Producer Price Index, and the Consumer Price Index.
Current outlook: neutral with locking bias