Mortgage Market Update

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.