Mortgage rates appear to be poised to reverse higher on technical signals.
It will be a busy week for financial newspaper publishers. There is a lot on the calendar. Here are some of the stories we’ll be watching this week that we believe can impact the direction of mortgage rates:
*Today- The National Association of Realtors reported this morning that existing homes sales fell sharply in December. The markets shrugged at the news realizing that the data is skewed because of the first-time homebuyer tax credit.
*Tuesday- US Treasury to auction $44 billion in 2-year notes, Case-Shiller home price index, and consumer confidence from the Conference Board.
*Wednesday- US Treasury to auction $42 billion in 5-year notes, December new home sales, and the Fed will conclude their 2-day monetary policy meeting with a statement (expected to leave short-term rates unchanged).
*Thursday US Treasury to auction $32 billion in 7-year notes & December durable goods orders.
*Friday- Q4 advance GDP report, U of Mich. Consumer Sentiment, and Fed Chairman Ben Bernanke must be reconfirmed by the Senate by the end of the week.
Because of cyclical and technical factors we are remaining in a locking position.
Current outlook: locking