Mortgage rates are unchanged this morning.
After 5 days of heavy selling in the mortgage-backed bond (MBS) market we’re finally seeing some demand this morning. As I pointed out in yesterday’s ‘rate update’ technical trading patterns are helping. If MBS prices can mange to close higher today then we’re likely to see mortgage rates improve in the coming days.
Also helping interest rates is Greece. Their financial mess is back in the headlines this morning which is creating renewed concern over their ability to service their debt. Investors are seeking a “safe-haven” in US debt securities including MBS’s.
However, US Treasury auctions may impact things. The US Treasury will auction $41 billion in 3-yr notes later today. Two weeks ago it was weak demand for US treasuries that prompted rates to begin creeping higher.
Current outlook: neutral