Daily Mortgage Rates Predictions

Rates will be Heading Down since the 200 day moving average held up.

The better than estimated Durable Goods Orders helped drive Bond prices down to touch the 200 day moving average this morning.  As predicted the floor of support at 99.46 held, but the -64bp loss will have cost us to lose at least .125% on the 30 Year Fixed Rates this morning.  Crude Inventories will be reported shortly.  Since the Mortgage Backed Securities are currently only down -34bp on the day [+9bp since most rates were issued and a long way from the -64bp] Mortgage Rates should be heading up.  We will be closely monitoring the stock market to see how it reacts to the Crude Inventories, hopefully stock are down and Mortgage Bond prices increase giving us improved rates today.  Tomorrow the GDP Chain Deflator signaling inflation under control would be what we need to get back in the 5’s.