Mortgage rates are slightly better than yesterday.
In Monday’s ‘rate update’ we referenced the significance of the economic data released yesterday and today. After receiving a mixed-bag of economic data yesterday we got worse than expected news today (bad news for the economy is typically good for mortgage rates).
Specifically, the all-important monthly employment report showed worse than expected job cuts in September. Furthermore, the national unemployment rate increased to 9.8%.
On the news stocks are trading lower which is helping to bolster demand for “safer” fixed income assets such as mortgage-backed bonds.
We remain in a locking position as rates dip to historic lows.
Current outlook: locking