Economic reports were mixed this morning with some showing weak employment figures and others showing a brief stabilization in the non-manufacturing sector.
Whatever the case, the Mortgage Bond market apparently had farther to fall from yesterday's slide.
Rates should worsen again today as the two main enemies inflation and weak demand continue to cause selling of mortgage bonds. Remember that Mortgage Bonds are directly related to interest rate. When more traders sell than buy, prices go down as competition among sellers increases. When prices drop, mortgage rates go higher.
I think we may get to come a couple steps back towards the positive some time soon even if we generally continue to worsen. it's very risky to try to time the market when rates are rising and inflation is in the foreground. Until we either have an outright economic disaster or inflation moderates, locking will be your safest bet. Still, there are gains to be had some time in the next several days with a well timed float. To stay tuned to more minute by minute changes, check out the mortgage professional blog during the day.