Mortgage Rate Forecast – May 9, 2011

Locking Stance:  LOCKING      Mortgage Bonds:  +6bp

As I mentioned in today’s Mortgage Rate Forecast Weekly radio show, I do not see any reason to be floating right now.  The resistance of the 200-day moving average, coupled with the apparent lack of a solid corrective move over the last month, just leaves the risk/reward ratio out of whack to be doing anything other than locking.

If you missed today’s show, feel free to listen to it in the right sidebar.  There is no economic data slated for today, but things will begin to heat up with the first of several Treasury Auctions starting tomorrow, along with some economic data.  The end of the week has some key players, so be ready for things to “shape up” by week’s end as we get readings on the economy and inflation.

What does this mean for Mortgage Rates? Mortgage rates are holding steady and likely will continue to do so, if not make a corrective move higher from here.

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