Has the nosedive of continually lower mortgage rate drops come to an abrupt hault? Many experts believe that we have hit bottom. Mortgage rates did not fall in lock step with treasury rates as investors flocked to safety on worries the economy would fall back in recession, so it’s unlikely mortgage rates will increase in step with treasury rates.
The 10 year note yield has increased 40 basis points in rate over the past three weeks while mortgage rates are only marginally higher. If you were thinking about locking, now is the time to do it.
This is a big week of economic news. Retail sales, four manufacturing reports, and the PPI and CPI. We will keep you posted on the impact to mortgage rates.