Mortgage rates are unchanged from yesterday.
After selling-off yesterday mortgage-backed bonds (MBSs) have rallied this morning on a mixed bag of economic data released this morning.
This morning the Fed’s favorite gauge of inflation, the Personal Consumption Expenditure Index, was released and showed inflationary pressure slowing on a year-over-year basis last month. Also friendly to interest rates was worse than expected employment data.
Although these economic indicators are helping mortgage rates this morning we need to be careful because the Fed is scheduled to announce the treasury auction schedule for next week. Amongst the new issues will be longer-term bonds which will compete directly with MBSs.
We are going to maintain a locking position and we believe rates are extremely attractive.
Current outlook: locking