Rate Update January 26, 2010

Mortgage rates are effectively unchanged this morning.

In housing news, this morning’s S & P Case-Shiller Home Price Index report showed that home prices in the 20 largest real estate markets across the country declined by 5.3% year-over-year as of November 2009.  According to the report Portland saw home prices fall 7.3% but improved modestly from October to November.

The Federal Open Market Committee begins day 1 of their 2 day monetary policy meeting today.  It will conclude with their policy statement tomorrow.  They are expected to leave short-term rates unchanged but their comments that accompany this announcement can move the markets.

Later today the Treasury will auction $44 billion in 2-year notes.  We assume demand will be strong so this likely won’t have a big impact on rates.

Current outlook: locking