Mortgage rates are unchanged from yesterday.
We are maintaining our locking bias today. Mortgage-backed bonds (MBSs) have now traded higher in each of the past 7 trading days. We believe they are ripe for a correction.
Today, MBS’s are benefiting from a weaker stock market. The Dow Jones Industrial Average is currently off 115 points in reaction to weaker than expected economic data.
The economic calendar is packed tomorrow and Friday so we wouldn’t be surprised to see some volatility.
Current outlook: locking