Mortgage rates are slightly worse this morning.
After creating new all-time lows yesterday mortgage rates are reversing higher this morning on technical trading patterns. The chart below shows how mortgage-backed bonds rallied in the past 5 days consecutively. Whenever we see acute moves like this it is not uncommon for traders to lock in profits.
Next week the US Treasury is scheduled to sell $99 billion in debt securities. The additional supply will make it difficult for rates to improve in the near term. For now, I will shift to a locking position.
Current Outlook: locking