Rates are priced slightly worse this morning.
Mortgage-backed bonds are trading slightly lower this morning following better than expected economic data and new details regarding Greece’s financial problems.
A couple regional economic production indices were released earlier. Each of the reports showed economic activity was greater than expected for the month of March. Good news for the economy is bad news for mortgage rates.
According to sources Greece has requested renewed talks with the International Monetary Fund and EU leaders to arrange for a long-term bailout package should they need it. This news has also pushed rates in the US higher because it is causing some investors to unwind the “flight-to-safety” trade that has helped keep yields low.
Tomorrow we’ll get updated figures on housing starts and consumer sentiment. I continue to recommend a locking stance.
Current outlook: locking