Mortgage Rate Update April 14, 2011

Interest rates are unchanged from yesterday but the closing costs associated with the rates are slightly less.

Yesterday’s auction of $21 Billion in 10 yr notes was received by the market “OK” and didn’t seem to have much effect on the price of Mortgage Backed Bonds.  This afternoon the Treasury will auction $13 Billion of 30 yr bonds and if the last two auctions are any indication of how this one will be, we shouldn’t see too much movement in the bond market from the results.  Without much on tap for economic news the bond market will be affected mostly by how the equity market is trading; so far this morning the DJIA is trading lower 50 points and we have seen the bond market trading about even on the day after making a nice comeback yesterday.

We seem to be in a bit of a holding pattern at current rates so I will maintain a neutral position on locking until we start to see some momentum in one direction or the other.

Current Outlook: neutral

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