Mortgage Rate Update June 8, 2011

Mortgage rates are unchanged this morning.

In a speech yesterday afternoon Fed Chairman Ben Bernanke endorsed the recent change in consensus regarding the economic outlook by highlighting the challenges that the recovery faces.  His speech sent stocks lower and bond prices higher helping to keep interest rates low.

Stocks are following through this morning beginning the day lower.  If stocks close lower it would mark the 6th consecutive day of losses on Wall Street.  So far this month the S&P 500 index is off almost 5% which has helped mortgage rates reach 7-month lows.

Later today the US Treasury will auction $21 billion in 10-year notes.  Demand is expected to be strong in light of recent market activity but if it is not it could cause rates to reverse higher.

Current Outlook:  Neutral