Mortgage Rate Update August 9, 2011

Mortgage rates are slightly higher this morning.

After the biggest one day loss since the peak of the financial crisis stocks are stabilizing this morning.  Conversely, mortgage rates declined yesterday and are now reversing slightly higher.

The big news today is the Fed’s monetary policy statement which is scheduled for 11:15AM PST.  The Fed is widely expected to leave short-term rates unchanged but what analysts will be listening for is whether or not the Fed will consider further monetary stimulus to help support the economic recovery.  We’ll be listening to the Fed’s carefully crafted message and watching the markets reaction to try and determine how it will impact mortgage rates.

Current Outlook:  neutral