Mortgage Rate Update September 30, 2011

Posted on by Evan in Rate Update

Mortgage rates are better this morning.

There is not any new significant news out of Europe this morning so the interest rate markets have shifted focus back on the economy.

The Commerce Department reported earlier today that personal incomes dropped in August for the first time since October 2009.  Consumer spending grew slightly but was below analysts’ expectations.  Overall the report was a disappointment which is helping mortgage rates.

PERSONAL INCOME FIGURES OUT THIS MORNING SHOW CONSUMERS ARE GETTING SQUEEZED

The Fed will release details later today about its schedule for buying and selling US Treasury securities as a part of its “Operation Twist” program.  It’s interesting to note that the recent decline in mortgage rates was impacted only by the announcement of this program.  The mechanics haven’t even been put in motion yet.

Current Outlook:  floating