Rate Update August 24, 2009

Mortgage rates moved higher Friday afternoon.  We shifted our bias to a locking position last Wednesday so hopefully you were protected.

Mortgage-backed bond (MBS) prices are flat on the day.  There is not much in the way of economic data to evaluate today so mortgage rates will likely take direction from technical trading patterns & the equity markets.

Looking ahead for the week there are a few important reports to monitor:
Tuesday- Consumer confidence/ S & P Case Shiller
Thursday- GDP/ Chain deflator
Friday- Personal Consumption Expenditure (PCE)

All the while the US Treasury will be auctioning T-bills, notes, and bonds.  We’ll be monitoring foreign participation throughout the week.

Current outlook: neutral