Although mortgage note rates are unchanged this morning pricing has in fact worsened since Thursday.
In case you missed it Friday’s all-important jobs report showed +175,000 new jobs created during the month of February. Over the past 12 months job growth has averaged +189,000. This was better than expected and mortgage rates suffered because of it.
A week ago the financial markets were focused almost solely on the conflict in Ukraine. And although that situation remains unsettled the financial markets are less interested in the storyline.
The economic calendar doesn’t heat up until the end of the week when we’ll get the latest reads on retail sales & wholesale inflation. In the absence of a prominent storyline and significant economic data I expect mortgage rates to react to technical trading patterns.
The technical picture looks promising. Mortgage-backed bonds (MBS) are currently trading at a floor of support so should find support to move higher (when MBS prices increase rates decrease). Furthermore, the US 10-year treasury yield is trading up against a ceiling of resistance at 2.79%. So long as rates can hold these levels I expect them to improve.
Current Outlook: floating