Mortgage rates improved modestly yesterday afternoon.  However, this morning mortgage-backed bond prices have reversed pushing yields back to levels we saw yesterday morning.

For now mortgage rates appear to reacting to technical trading patterns.  We are going to keep our locking bias in place.

In a side note, White House Spokesman Robert Gibbs commented today that the president’s economic team was in the process of reviewing the impact that the first-time homebuyer credit has had in stabilizing the housing market and will make a recommendation to the president as to whether or not it should be extended.

Current outlook: locking bias