Rate Update August 26, 2010

Mortgage rates are essentially unchanged from yesterday.

This morning the weekly jobless claims figure came in better-than-expected.  For the past few weeks this report has repeatedly come in worse than analysts had expected.  However, the 4-week moving average managed to increase based on previous revisions higher.

Expectations are growing on Wall Street that the Fed will reenter the marketplace and engage in the purchase of US Treasuries & Mortgage-backed bonds (MBS’s) to keep rates low.  The Fed’s annual conference in Jackson Hole, Wyoming and Fed Chairmen Ben Bernanke is slated to talk speak tomorrow.

Current outlook: long-term floating