Mortgage rates improved yesterday afternoon as mortgage-backed bond (MBS) prices managed to close above the all important 200-day moving average which I explained in Wednesday’s ‘rate update’.
The results of the long-term treasury auctions for Wednesday and Thursday were favorable which is why mortgage rates have managed to move lower this week. 30 yr fixed prime rates are now below 5.00% making it a great time to consider a refinance or purchase of a new home.
With the absence of significant economic data out today we will continue to float so long as MBS prices remain above the 200-day moving average.
Current outlook: floating so long as MBS prices remain above 200-day MA
P.S. Happy Birthday to me!