Mortgage Rate Update May 18, 2011

Mortgage rates are unchanged this morning.

There is no significant economic data out until this afternoon when the Fed will release minutes from the last monetary policy meeting.  If you’ll recall Fed Chairman Ben Bernanke held the first ever press conference falling the meeting so this release will no longer garner as much attention.

The 10-year Treasury yield was able to close below 3.14% yesterday and is holding below this important technical level for now.  So long as it does so I’ll remain in a floating position.  However, if yields reverse back above this level it would likely signal a reversal in mortgage rates as well.

Current Outlook: floating bias