Mortgage rates worsened towards the end of last week, but still showed an overall improvement. Today we are seeing rates worsen and inflation is back in the news. Rates are pretty good, this will will either set a nice floor or make a breakout to higher numbers.

 

Mortgage rates worsened a little last week, and stock rallied for 5 days. I am thinking rates may worsen this week as well, with a potential China resolution on trade coming and Companies start announcing last quarter earnings. We also have housing data, inflation data, and Retail Sales for December. If all of these are good, Stocks should rally which will drive mortgage rates higher.
.
 

Mortgage rates improved last week, as volatility in the stock market is sending investors to Bonds and Mortgage Back Securities. Although a short trading week, we do have unemployment numbers and more important wage inflation being released at the end of the week. Also word out is progress on China Trade. This could break our trend and cause stock to rally.