Mortgage Rate Update April 25, 2011

Back from vacation and mortgage rates are starting out the week priced slightly better.  Thanks to Aaron for covering for me while I was away.

My brother-in-law & I catching up while on vacation

The week ahead is a busy one in terms of economic data.  Market participants are eying Wednesday’s Fed meeting as a potential highlight.  The Fed is widely expected to leave short-term interest rates unchanged but for the first time Fed Chairman Bernanke will hold a 45-minute press conference following the policy statement to help clarify his message.  This should be interesting.

We’ll also get plenty of housing data this week.  Earlier today the Commerce Department reported that new home sales increased by 11.1% last month from an all-time low level.  This was better than expected growth.  Tomorrow we’ll get an update to the S&P Case-Shiller home price index.

From a technical perspective mortgage-backed bond prices are currently in an “overbought” position which leads me to believe we may see rates worsen unless we get some unexpectedly concerning economic news.

Current Outlook: Locking