Mortgage Rate Update June 6, 2011

Mortgage rates are unchanged this morning.

There is no significant economic data out today.  Interest rates are threatening to move slightly higher as investors brace for $66 billion in new US Treasury auctions this week.  The auctions kick off tomorrow with $32 billion in 3-year notes, followed by $21 billion in 10-year notes Wednesday, and $13 billion in 30-year bonds Thursday.  Click HERE to understand how government borrowing can impact mortgage rates.

All the significant economic data will arrive in the latter half of the week.  In the meantime investors will continue to digest last week’s disappointing jobs data.  I expect mortgage rates to remain low as long as the economic outlook is weak.

Current Outlook:  Neutral