Outlook for rates for the coming week:  :-(

Last Week's Mortgage Rate Recap

Last week saw mortgage rates lose an average of .25% in rate among most lenders as MBS (Mortgage Backed Securities) lost 182 basis points in trading pricing. This increase saw us hit the second highest level of mortgage rates in 2013. The end of the week saw us test a critical support level in trading, which we must now see if it holds. The market continues to be a slave to economic reports and concerns about the Fed tapering down on QE3's purchase of MBS (Mortgage Backed Securities) and Treasuries. Both the stock market and the bond market are trying to position themselves in advance of the withdrawal.

This Week's Mortgage Rates Forecast
Mortgage Rates Currently Trending: HIGHER
This week begins with a focus on the technicals as we see if the support levels hold up. The Relative Strength Indicator shows that we are poised for a bit of a rebound, but it may not be strong enough to have a significant effect on mortgage rates and it may not come until we see a bit more deterioration. Economic news this week that could move the markets includes FOMC minutes on Wednesday, and the Jackson Hole meeting as Central Bankers and economists from around the world attend. Traders will be focusing on any discussion on the timing of the Fed's tapering of bond purchases and who the next Fed Chair will be. .

BOTTOM LINE: Take advantage of any positive days to make up lost ground on rates, but don't hold off thinking that lower rates are on the horizon (they are not). Be sure to watch the live MBS (Mortgage Backed Securities) market with your Mortgage Loan Originator to stay a step ahead of lender reprices and to cash in on market gains that help mortgage rates.