Mortgage Rate Update March 11, 2011

Mortgage rates are slightly better this morning.

The earthquake and subsequent tsunami in Japan are grabbing the markets attention this morning.  My thoughts and prayers go out to those who lost loved ones in this natural disaster.

The US bond market is starting the day softer which may threaten to push rates higher.  One analyst is saying that the Japanese earthquake is causing this action because Japanese insurance companies are selling US treasuries to raise cash in preparation to pay out claims.

The Commerce Department reported this morning that retail sales in February grew at a slightly lower pace than expected.  This is likely a sign that rising gasoline prices are beginning to impact consumers.

The technical trading signals have returned to neutral this morning so I will also shift my outlook to neutral.

Current outlook: neutral