Quick view of the mortgage market today. Rates have softened a little bit on a couple of things:
- Gross Domestic Product for the 2nd quarter came in significantly less bad (but not good) than expected. That increases the financial markets perceptions that the worst is over.
- The Treasury Auctions from earlier this week went better than expected.
We are now entering the phase in the market where we’re waiting for the jobs report next Friday. Expect a lot of volatility and very little movement (market noise) until then. Expect the market to continue to try to sort out the difference between actual economic improvement and a slowing of the pace of decline.
Until then, my recommendation remains to lock all loans. The upside risk is worse than the downside potential.