March building permits were a slight beat this morning posting a 4.2% gain to 1.267 million annual units, just above expectations. Treasury yields are unchanged as investors assess the prospects of a Trump tax cut. Mortgages are doing well as spreads-to-treasuries have tightened a bit. The 10-year has settled back into its old range, currently yielding 2.33%, unchanged from yesterday’s close.
This market is uncertain, mortgage rates sometimes move in opposite directions from the yield (which makes no sense). The bottom line is you need to find a rate you are happy with and lock because playing the market to try and improve by an eighth is Russian roulette.
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