Rates are unchanged but are threatening to move higher.
With a lack of economic data out today I expect mortgage rates to react to technical trading patterns and the stock market.
From a technical perspective the price of mortgage-backed bonds (MBS’s) have rallied after hitting lows from December of 2009. Mortgage rates have improved by about .125%. However, MBS prices are now facing resistance at the 10 & 20 day moving averages.
Stocks are trading higher this morning which is bad news for mortgage rates. The reporting season for first quarter earnings kicks off Monday. In general when these reports are positive it hurts mortgage rates and vice versa.
The safe money will lock in after the gains made earlier in the week.
Current outlook: locking