Mortgage rates are mostly unchanged from the beginning of the week. Rates are currently at the best levels since early September.
It’s amazing how accurate technical trading signals can be. Back on September 18th I recommended a “floating bias” (see HERE) as the yield on a US 10-year treasury note was approaching its 200-day moving average @ 2.65%. At that time 30-year fixed rates were 4.25%-4.375%.
Since then yields on the 10-year treasury have reversed lower off the 200-day moving average as we anticipated and mortgage rates have improved by .125%-.25%.
But technical trading patterns will likely take a back seat tomorrow when the all-important jobs report is released. Currently, the markets are expecting ~230,000 to be reported for new jobs created last month. Last month only 142,000 jobs were created.
The results of the monthly jobs report are very hard to predict. Since mortgage rates are near the best levels of the year we don’t think there is much room to run even if a disappointing report is released. Therefore, I recommend locking in ahead of tomorrow.
Current Outlook: locking bias