Mortgage Rate Update March 9, 2011

Mortgage rates are unchanged again this morning.

Interest rates may benefit from a modest flight-to-quality this morning in the financial markets.  Investors are seeking the “safety” of US-Dollar denominated fixed income securities as Libyan forces loyal to current President Gadhafi strike back against rebel forces.

48 hours ago many analysts were predicting that Gadhafi’s regime would be thrown from power within the week.  Now the outlook is much less certain and uncertainty typically drives rates lower.

However, US interest rates will have to contend with $21 billion of 10-year note supply today as the US Treasury heads for the auction block.  CLICK HERE to understand how government borrowing can impact mortgage rates.

The economic calendar brings initial jobless claims tomorrow and retails sales on Friday.  The markets are paying close attention to Libya at this point.  Any development towards resolution of the conflict would likely push rates slightly higher.

Current outlook: locking