Rate Update August 26, 2009
Mortgage rates are ignoring economic fundamentals this morning creating a great opportunity to lock. Rates are lower despite an economic calendar which would suggest rates should move higher.
The news this morning does not look favorable for mortgage rates:
*Durable goods orders jumped by the largest amount since July 2007 last month. Good news for the economy is typically bad news for mortgage rates.
*New homes sales came in better than expected for the month of July according to the Commerce Department. This is the fourth straight month that new homes sales have increased.
*The US treasury is scheduled to auction $39 billion in treasuries later this afternoon. The additional supply could put a damper on mortgage-backed bond prices; pushing rates higher.
*The technical trading picture is not attractive for mortgage rates right now. The last few times 30 year fixed rates have touched 5.00% they have bounced higher in the following days.
Current outlook: locking