I hate to sound like a broken record, but it is, yet again, an uneventful day for mortgage rates (so far).

There was some data released that seemed to hurt mortgage rates: AMBAC, a large bonds insurer announced a larger than expected loss due to its mortgage related activities.  But other economic weakness including corporate profits and a worse than expected report on Mortgage applications is helping to balance things out.


Still, we have lost a little ground this morning and the same rate today may cost an additional .125% points over yesterday.

To reiterate yesterday's advice, the safest bet is to lock considering current market conditions.  The only caveat here is that, if you have several weeks before you need to close and firmly believe that the stock market will continue to decline, floating can still make you some money.  But likely, you would lose more money if the market dives than you will gain from floating if the market improves.  This is a simple factor of "resistance."  In other words, in a recent and distant historical context, rates are better than average.  So the "invisible" forces exerted on rates to worsen are greater than those stimulating improvement.  Traders and analysts refer to this as "technical analysis."

Stay tuned to the professional blog for intraday updates if you are indeed considering floating.  Simply watching US Treasury prices will not be good enough today as the mortgage market and the treasury market have moved in opposite directions.

 Stay tuned...