Rate Update Janaury 28, 2010
Mortgage rates are priced slightly worse this morning compared to yesterday.
Mortgage rates worsened yesterday afternoon following the Fed’s policy statement. You can read details as to why the market reacted in this manner HERE.
This morning’s jobless claims figures were slightly better than last week but not as good as analysts had thought which has helped support mortgage-backed bond prices (MBS’s).
Today the US Treasury will complete it’s $118 billion in treasury note auctions for the week with a $32 billion 7-year note offering. Yesterday’s 5-year note auction went well and analysts expect today’s auction to be met with solid demand which will help keep rates low.
Yesterday’s comments from the Fed were a good reminder that mortgage rates are almost indefinitely poised to move higher in the coming weeks/ months. We will remain in a locking position for the time being.
Current outlook: locking