Rate Update August 9, 2010

Posted on by Evan in Rate Update

Mortgage rates are lower today.

Mortgage rates have improved since Friday’s disappointing employment report.  The financial markets are mostly unchanged this morning.

There is no significant economic data scheduled for release today.  Looking ahead for the week the US Treasury will auction $74 billion in 3-year, 10-year, and 30-year bonds beginning tomorrow.  I wouldn’t be surprised to see demand soften for these auctions given that yields are so low.  This may pressure mortgage rates higher as well.

The Fed will meet and release a policy statement tomorrow.  I expect them to reaffirm their position of keeping short-term rates low to help stimulate the economy.  Any deviation from that position could move the markets.

The economic calendar doesn’t get busy until Thursday-Friday.

Current outlook: floating