Housekeeping: ‘Rate update’ will be taking a break from laboring one week from today. In honor of Labor Day here is a quote from Robert Orben: “every day I get up and look through the Forbes list of the richest people in America. If I’m not there, I go to work.”
My thoughts and prayers go out to all those affected by the devastating impact of Hurricane Harvey. I wish those who lie in the storm’s wake a safe next few days and rapid recovery.
This week appears to be a pivotal one in terms of the direction of mortgage rates. Since the beginning of July interest rates have improved and mortgage rates are currently at the best levels of the year.
However, the yield on the US 10-year treasury note has idled at the 2.18% level over the past week. Given the amount of significant economic data due out this week I think interest rates will make a decisive move higher or lower in the coming days.
On Tuesday we’ll get the latest reading of the Case Shiller Home Price Index report. On Thursday we’ll get a reading on personal income and pending home sales. Finally, on Friday we’ll get the all-important jobs report, manufacturing activity, and consumer sentiment.
For now I will maintain a floating position but have grown concerned that this trend lower has run out of steam.
Current Outlook: floating