Mortgage Rate Update February 14, 2011

Our move to a floating’ outlook on Friday proved timely as rates have improved since then.

The economic calendar is light today but the remainder of the week is jam packed with retail sales, inflation, housing, employment, and manufacturing reports due out in the next 72 hours.  

Following Egyptian President Hosni Mubarak’s resignation on Friday news outlets are reporting that protests are forming and gaining momentum in other Middle Eastern countries.  This is causing some anxiety amongst investors which is helping interest rates via a “flight-to-quality” trade.

For now I will continue to recommend a floating bias.

Current outlook: floating