Mortgage rates are essentially unchanged from yesterday.
Mortgage rates have had a nice run in the past month and a half but we think it’s times to call the bottom. We are going to shift our outlook to locking.
The main reason for this is the Fed’s indication that they would gradually unwind their involvement in the mortgage-backed bond (MBS) market. The chart below shows daily purchases of MBS’s by the Fed dating back to the beginning of the year. Since late July they have decreased their purchases 4.0% & 4.5% coupons and increased the purchase of 5.00%-5.50% coupons. This in and of itself will put upward pressure on mortgage rates. Lock while you can!
Current outlook: Locking