Daily Mortgage Rates Predictions

Rates are still heading higher… The 200 day moving average is a ceiling bonds can’t seam to break through.

This morning all of the economic indicators met expectations.  Personal Income was up 0.2%, but inflation was also up, so consumers will feel no benefit of those gains.  After 6 rough days for Mortgage Bonds there was a glimmer of hope this morning when bonds attempted to rally up to 99.53 [+50bp] on the day.  The 200 Day moving average is at 99.48.  Unfortunately, Mortgage Bonds hit the 200 Day moving average and declined to currently only being up +28bp on the day.  We will be looking to next weeks economic indicators to see if Mortgage Bonds can break the 200 day ceiling of support.