Mortgage Rate Update September 26, 2011

Mortgage rates are slightly worse this morning.

For mortgage rates to move lower this week they’ll have to battle headwinds that would traditionally push rates higher.  The US Treasury will auction $99 billion in 2-year, 5-year, and 7-year notes this week.  The added supply of fixed income securities will make it hard for rates to ease lower.

Over the weekend European finance officials continued to meet and discuss a rescue plan to curb the spread of financial contagion to countries like Ireland, Portugal, Spain, and Italy.  Although officials are adamant about doing whatever it takes they are short on details which the market would like to analyze before giving a plan any credibility.

The economic calendar is also packed this week with important released every day.  Earlier today the Commerce Department reported new homes sales that were slightly lower than expectations.  However, the report revised higher last months release.  The markets have not reacted to this release.

Current Outlook:  locking bias

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