Rate Update August 25, 2010

Mortgage rates are priced slightly better this morning.

Another day of weak economic data is weighing on stocks and helping mortgage rates.  The Commerce Department reported this morning that new homes sales and demand for durable goods in July came in weaker than expected.  The Dow Jones Industrial Average briefly broke below 10,000 on low trading volume.

Overnight Standard & Poor’s cut the credit rating on Ireland’s government bonds which has further fueled the “flight-to-safety” which pushes mortgage rates lower.

Tomorrow brings weekly jobless claims figures which over the past couple weeks has been reported weaker than expectations.  At this point mortgage rates are back down at all-time lows making it an opportune time to lock.

Current outlook: neutral