Mortgage rates are unchanged from yesterday. 30-year fixed rates have now remained in the 4.875%-5.00% range for almost an entire month.
Yesterday the US Treasury auctioned off it’s first round of $81 billion in securities for the week. The $40 billion in 3-year notes was met with weaker than expected demand which does not bode well for mortgage rates. Today they will auction $25 billion in 10-year notes.
This morning the news out of the EU is that Germany is in talks with other nations to lead a bailout of Greece. If these talks produce a credible plan then we may see mortgage rates move slightly higher as the “flight-to-quality” trade unwinds.
Lastly, Fed Chairman Ben Bernanke outlined in written testimony the Fed’s plan for unwinding the monetary stimulus that they have implemented since late 2008. The equity markets are not receiving the news well. Stocks are trading lower as are mortgage-backed bonds.
We will shift our outlook to a neutral position.
Current outlook: neutral