Mortgage Rate Update September 8, 2014

Mortgage rates are essentially unchanged from last week and remain at 2014 lows.

Friday’s all-important jobs report disappointed analysts.  It showed that the US economy added only 142,000 new jobs last month.  The markets had been expecting ~220,000 new jobs.  Bad news for the economy is often good news for interest rates.

Overseas story-lines continue to support low interest rates here in the US.  A new storyline has emerged in the United Kingdom.  We are 10 days away from a referendum in Scotland where voters will decide whether or not to declare independence from the UK.  A poll released over the weekend showed that voters opting for independence slightly outweigh the opposition.  Geopolitical uncertainty favors US mortgage rates.

This weeks economic calendar is relatively light so mortgage rates will likely take direction from technical trading patterns and the US stock market.  Momentum remains in our favor so I will recommend a floating bias.

Current Outlook: floating