Mortgage Rate Update August 15, 2011

Mortgage rates remain near all-time lows this morning.

The economic calendar is full this week.  Over the past couple weeks the outlook for economic growth has gotten worse which is one of the reasons why mortgage rates have improved.  This week we’ll get a look at housing, inflation, and manufacturing data.  Should the data continue to disappoint then rates should remain low.  Should any of the reports give cause for optimism it could push rates higher.

The New York Manufacturing Index was reported earlier today and came in below expectations.  GDP data out of Japan beat expectations which is helping stock markets around the globe to advance.

There has been chatter in the financial press about a 3rd round of quantitative easing from the Fed in effort to keep long-term interest rates low.  This may also be contributing to low rates today.

Current Outlook:  locking bias