Mortgage rates are mostly unchanged from late last week.
I am encouraged by the technical outlook for interest rates. A look at the chart showing the yield on the US 10-year treasury note, which mortgage rates correlate with, reveals that downward momentum is in play and there is plenty of room for rates to move lower.
So long as the yield on the US 10-year treasury note can close at 1.91% or lower today I believe mortgage rates have a great chance of improving by another .125%-.25%.
The National Association of Realtors released a report showing existing home sales for the month of February. Nationwide the number of closed transactions increased by 1.2% from a year ago. In the West existing home sales rose by 5.7% and the median home price increased by 4.2%.
The US Government will auction $90 billion in fresh debt this week. The additional supply may make it difficult for mortgage rates to improve (CLICK HERE to understand why).
The economic calendar for the week is not long but it is meaty. On Tuesday we’ll get the latest reading for the Consumer Price Index & new home sales. On Friday we’ll get a revised estimate on 4th quarter GDP.
I would recommend floating to see if rates improve as a result of the aforementioned technical outlook.
Current Outlook: floating