Mortgage Rate Update August 13, 2015

Mortgage rates are effectively unchanged from Monday.

In a surprise move the Chinese Government devalued the Yuan on Tuesday in an effort to make their goods and services look more attractive to the global economy.  The move was unexpected and caused a short “flight-to-safety” in the financial markets which benefits US interest rates.  Furthermore, cheaper Chinese goods eases inflationary concerns which is positive for mortgage rates.

Earlier today US retail sales were reported for last month.  Overall the report was slightly better than analyst had expected.  Good news for the economy is often bad news for mortgage rates.

Later today the US Treasury will auction $16 billion in fresh 30-year bonds.  A positive response would be good for mortgage rates and vice versa.  Given that rates are near 3-month lows I recommend a locking bias.

Current Outlook: locking