Rate Update December 13, 2010

Posted on by Evan in Rate Update

Mortgage rates are worse again this morning.

A more upbeat view on the economy has driven rates higher over the past couple weeks and this week brings a long list of economic data points for the markets to digest.  The data points kick off tomorrow when the markets get the Producer Price Index & the Fed monetary policy statement.

According to a WSJ survey released today economists now believe the economy will grow faster both in the 4th quarter of 2010 and throughout 2011 compared to their expectations last month.  This is good news for the economy but bad news for mortgage rates.

From a technical perspective mortgage-backed bonds (MBS’s) appear oversold.  Should one of the many data points scheduled for release this week disappoint I wouldn’t be surprised to see rates improve.

Current outlook: near-term floating, longer-term locking

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Guild Mortgage. This is for informational purposes only. This is not a commitment to lend.