Rate Update August 20, 2010

Mortgage rates are better today than they were yesterday morning.

Stocks are trading lower for the second straight day on comments out of Europe which have soured the global economic outlook.   Ordinarily this would help mortgage rates but mortgage-backed bonds (MBS’s) are currently trading sideways.

For now, I am still recommending a long-term floating position.

Looking ahead to next week the economic calendar is relatively full and the US Treasury is set to auction $102 billion in 2-year, 5-year, and 7-year notes.

Current outlook: floating long-term