Mortgage Rate Update December 23, 2010

Mortgage rates are slightly worse today.

Mortgage-backed bonds are trading lower this morning in a thinly traded market.  This morning the markets are digesting a mixed-bag of economic data.  Just about every report out this morning shows good news and bad news for the economy.

According to the Commerce Department durable goods orders decreased by more than expected last month.  However, if we exclude volatile aircraft purchases then the report was actually better than expected.

This weeks jobless claims figure showed that new claims fell by more than the markets were expecting.  However, the Labor Department also made an upward adjustment to last week’s figure.

The Commerce Department reported that personal spending growth fell just shy of expectations while personal incomes came in slightly above.

All in all the economic data is mostly a wash today.  The US Treasury is expected to announce $99 billion in auctions for next week.  The prospect of added demand is likely what is pushing rates higher.

Current outlook: neutral

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.