Today's mortgage rates and what we learned yesterday

Mortgage rates opened HIGHER this morning as investors saw a huge increase in locks yesterday amid record prices for lower coupon mortgage backed securities. This morning we saw lenders padding their rate sheets as they now have more loans than they know what to do with. We did see some marginal improvement around lunch time that put us close to yesterday's prices, particularly for the higher coupons (4.75% and above, and yes I did just call 4.75% high. Felt weird to type that) So, we have seen what happens when rates approach 4%, everything goes crazy and they back up. This is called RESISTANCE. For those out there hoping or foolishly waiting for rates below 4.5%, don't do it. The market has shown it's floor and we are currently hovering over it. Do not be concerned with what interest rates were yesterday, instead concern yourself with where they are today. With that, I still recommend locking your interest rate and hope for rates to improve so that you can float down prior to closing.