Locking Bias

Nothing too exciting is happening in the financial markets.  With bonds still beneath the ceiling of resistance that have held back rates from improving beyond lows last seen in November of 2016, any real exciting change will likely be if mortgage interest rates move higher.  Fortunately, that hasn’t yet happened.  As a result, mortgage interest rates remain right at multi-month lows. 

Unemployment Claims have continued to remain near 40-year lows.  The lack of claims is a reflection of a tight labor force where employers are hanging on to their employees.  In fact, the labor force is similar to the housing market where there are more employers willing to hire than they are able to find.  If we can get more able workers to rejoin the labor force, we could see the job market explode.

Given the lack of hope of a breakout, we will maintain our locking bias.