Mortgage rates are lower than where we started the week. The shift to floating on Monday proved to be the correct call.
The impact of last week’s stronger than expected jobs report was short lived. After rates rose ~.125% on Friday last week they have calmed back down to the levels available one week ago today.
The Commerce Department reported weaker than expected retail sales numbers earlier today. Despite low gasoline prices and a strengthening jobs market consumers remain cautious (and snowed in their homes) when it comes to consumption.
Back on February 26th I posted THIS PIECE which highlighted the stock market rally and cautioned that equities may be ripe for reversal. From that date to yesterday’s close the S&P 500 index had fallen by ~3.3%. So far today US stocks are trying to rally which may hurt mortgage rates. I still get the feeling that stocks may be headed lower.
From a technical perspective mortgage rates are trending lower and momentum is on our side. I will maintain a floating bias.
Current Outlook: floating