Mortgage rates have worsened by ~.125% this week.
The big news story of the week is the European Central Bank’s (ECB) announcement that they are enhancing quantitative easing measures designed to boost economy activity in their economy. ECB President Mario Draghi outlined a multitude of aggressive measures including charging banks interest for depositing excess reserves (negative interest rates) and purchasing corporate bonds in addition to government bonds.
The US stock market initially reacted positively to the announcement but have since reversed into negative territory. Despite the fact that stocks are trading lower US interest rates have been pressured higher. The US 10-year treasury yield is not trading above an important technical level of 1.90%.
This is a bad sign for mortgage rates. As I wrote about on Monday (see HERE) there is room for the yield to move up by another .20% which could push mortgage rates up another .125%-.25%.
Current Outlook: locking