Mortgage rates are slightly worse this morning.
This week’s economic calendar is light. There is no significant economic news scheduled until Wednesday when we’ll take a peek at existing home sales and minutes from the last Fed meeting.
Mortgage rates are worse to start the week after stocks continued to rally last week. The major US stock indexes increased by 1.6%-2.1% last week. When stocks climb in price it tends to pressure interest rates higher.
The US 10-year treasury yield remains within the 1.6%-2.0% range I highlighted last week. Currently, the 10-year treasury us trading at 1.95%. If we see yields drop down around the 1.80% level then we’ll shift our outlook to locking OR if we see yields close above 2.00% for two consecutive days we’ll lock to protect ourselves against higher rates. In the meantime, we’ll float.
Current Outlook: floating