Mortgage rates are better across the board this morning.
Mortgage rates are benefiting from a weak stock market this morning. Currently the Dow Jones Industrial Average is off 150 points in response to weaker than expected consumer sentiment numbers.
This morning the Labor Department released the Consumer Price Index (CPI) report. Inflation readings from this index were in line with analysts’ expectations which supports the Fed’s comments made on Wednesday that inflation, at least for now, is not a huge concern.
From a technical perspective mortgage-backed bonds have broken above an important later of resistance. As long as we remain above this level we are going to recommend floating.
Current outlook: float as long as MBS prices remain above the 200-day moving average