Mortgage rates are unchanged this morning.
Yesterday marked the 6th day of the past 7 that mortgage rates either went unchanged or worsened slightly. Over that time-frame I’ve held a “locking bias” so if you followed my advice you profited this time around.
Anytime we see a streak like this we start paying closer attention to technical trading patterns. Mortgage-backed bonds (MBS’s) are currently trading down against 3 layers of support so theoretically we should see rates stabilize or even improve modestly. However, should MBS prices break this support I would expect rates to increase by another .25% so we need be on our toes.
Stocks are trading higher this morning on news that the Commerce Department has revised higher 4th quarter GDP figures to 3.1%. However, most analysts agree that 1st quarter GDP will likely lag due to higher gas prices.
I will shift my outlook to floating unless MBS’s break below technical support.
Current outlook: floating