Rate Update January 29, 2010

Mortgage rates are unchanged from yesterday.

This morning stocks are rallying putting upward pressure on mortgage rates.  The Commerce Department released the latest GDP report which showed that the US economy grew by a 5.7% annualized rate in Q4 2009.  Analysts had expected a reading of 4.8% so the better than expected results has Wall Street giddy.

Inflation measures within the GDP report showed price pressures remain subdued which is favorable for long-term interest rates including mortgages.

Similar to mortgage rates the yield on the 10-year Treasury Note has been trading near resistance for the past few days.  Given that yields haven’t been able to muster up enough momentum to break below current levels we believe this will be as low as they barring any surprise event.  We’ll remain in a locking position.

TNX: yields on 10-yr treasury times 10

Current outlook: locking