Interest rates have been trading between 4.875% and 5.25% over the past week on a 30 year mortgage.
After some up-and-down trading, Mortgage Backed Securities are at near unchanged levels this morning, while Stocks are now down.
In the news, Pending Home Sales more than doubled expectations last month, making July the sixth consecutive month of gains. This marks the longest streak on record and bodes well for the housing industry. Also this morning, the ISM Index came in at its highest reading since June 2007, indicating some nice growth in the manufacturing sector.
Currently, Stocks are down, while Mortgage Bonds have improved from their worst levels earlier. I recommend floating for now to see if they can continue to improve. But be prepared to lock if the situation changes.