Rate Update August 12, 2009

As we had predicted in yesterday’s ‘rate update’ mortgage rates did dip modestly by mid-morning yesterday.

Today, mortgage rates haven’t followed through on the momentum.

We’re going to take a “wait and see” approach into today’s heavy economic calendar.  Watch today’s you tube video for an explanation on what we believe will impact mortgage rates.

Here is a link to an article which explains why the Fed’s short-term interest rates don’t directly effect mortgage rates.

Current outlook: neutral