Rate Update February 22, 2010
Mortgage rates are unchanged from Friday.
There is not much in the way of signifcant economic data out today. Therefore, mortgage rates are likely to react to the stock market and technical trading patterns for the rest of today.
Looking ahead, the US Treasury is set to auction $126 billion in fixed-income securities this week starting with $44 billion of 2-year notes tomorrow. Two weeks ago foreign demand was relatively weak for the treasury auctions which helped to pressure rates higher last week.
Tomorrow the markets will get a look at the latest consumer confidence numbers. On Wednesday Fed Chairman Ben Bernanke will testify on the economy in front of Congress. We can expect politicians to create a lot of noise but the bottom line is the economy is recovering and the Senate is in a stalemate so who is doing their job? On Friday we’ll conclude the week with a slew of significant financial data.
Mortgage rates increased across the board last week and unfortunately mortgage-backed bond prices have broken technical support (which is now resistance). We’ll shift to a near-term and long-term locking stance.
Current Outlook: locking