Mortgage rates priced slightly better this morning.
Technical trading patterns and good demand for yesterday’s treasury auction helped support mortgage rates yesterday.
Attention continues to be paid to Greece. They announced today that their 2009 deficit would end up being higher than previously forecast. Concerns over their financial stability will help interest rates here in the US as investors seek “safety”.
Later today the US Treasury will auction $21 billion in 10-yr notes. The market will be watching the level of participation of foreign buyers (“indirect bidders”). Over the past few auctions they have steadily reduced their demand. Should that pattern continue mortgage rates could see some upward pressure. However, if foreign buyers show strong demand it would help mortgage rates move modestly lower.
I am going to recommend floating.
Current outlook: floating