Mortgage rates are better this morning.
The Commerce Department reported this morning that the trade deficit (the difference between the amount of goods imported into the US and the amount of goods exported out of the US) widened by a larger than expected margin. This is bad news for the economy which is why investors are selling stocks this morning.
Also helping rates to move lower was the Fed’s announcement yesterday that they would use money from the prepayment of mortgage-backed bonds (MBS’s) on their balance sheet to buy more US Treasuries which will create additional demand and drive yields down.
Current outlook: floating