Mortgage Rate Update August 26, 2011

Mortgage rates are better this morning.

Fed Chairman Ben Bernanke DID NOT mention any additional quantitative easing moves in his highly anticipated speech to central bankers in Jackson Hole, WY this morning.  He did say that the monetary policy committee would discuss further options at their September meeting so he is leaving the door open.

The Commerce Department revised 2nd quarter GDP growth lower to a meager 1.0% (from 1.3%).  Yesterday Germany and the UK reported similarly weak results.  The majority of economic data released over the past month has been weaker than expected which is partially why mortgage rates have moved lower.

Mortgage rates have improved since mid-week highs and I will recommend floating into the afternoon.

Current Outlook:  floating

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