Mortgage rates are slightly better this morning. Fixed mortgage rates have now remained at the 4.875%-5.00% level since mid-January.
Whenever we see mortgage rates remain within a tight range for an extended period of time we grow increasingly concerned about a “break-out” which is when MBS prices move acutely in a short-time frame. The catalyst for such a move could come tomorrow with the official jobs report (click HERE to understand why this report is important).
Analysts are currently expecting flat jobs numbers for the month of January. We’ll also keep an eye out for revisions to previous month’s job figures. If you’ll recall in December the economy lost 85,000 jobs. We wouldn’t be surprised to see that number revised lower.
All in all we continue to feel there is more to lose than gain at this point. We’ll remain in a locking position.
Current outlook: locking