Just more of the same in the bond market, with mortgage interest rates continuing their slow climb higher. Bond prices remain just above their 50-day moving average, which will hopefully hold prices from falling further. If prices do break beneath this critical level, mortgage interest rates will tick higher, as the next significant floor of support provided by the 100-day moving average is a long fall from current levels. With stock prices again making continued advances, this could provide the catalyst that pushes rates higher. Hopefully, stock prices will not advance beyond all-time high levels, as that would likely trigger a sharp move lower in bond prices.
This morning’s report from the National Association of Homebuilders (NAHB) on the Housing Market Index showed that builder’s sentiment is now at a 6-month high. This is not at all surprising, as spring time is when many people make the decision to move into a new home. With builders feeling the increased traffic in their homes, we anticipated this report to show strong.
With mortgage interest rates continuing to climb higher, we will maintain a locking bias.