Rate Update February 16, 2010

Mortgage rates are slightly improved from last week.  Mortgage rates have remained mostly unchanged for the past month as the chart below shows.

Fears over Greece’s fiscal condition are being overshadowed by a better than expected reading of the New York Manufacturing index.  On that news stocks are trading higher which is putting some pressure on rates to move higher.

Looking ahead for the week it is going to be a busy week.  Tomorrow brings important housing and import price data.  On Thursday the US Treasury will announce the size of its treasury auctions for next week.  In addition, the Labor Department will release the Producer Price Index (PPI).  On Friday we get the consumer Price Index (CPI).  The double dose of inflation related data always has the ability to move rates.

For now we’ll remain in a neutral position.  However, we still believe the long-term risks favor locking.

Current outlook: neutral