Rate Update July 19, 2010
Mortgage rates are unchanged from Friday.
After a busy end to the week last week which saw the stock market tank on Friday mortgage rates are back at historical lows. This week is scheduled to be much lighter in terms of economic data so we’ll be watching stocks and technical trading patterns.
So far this morning stocks are trading lower on a worse than expected reading of US home-builder sentiment. Despite this mortgage-backed bonds (MBS’s) are also lower reacting to comments out of China that suggest they may lighten up on US-denominated assets (included MBS’s). Should this come to fruition it would mean greater supply and less demand for US debt securities which would push rates higher.
The markets appear to be searching for some direction. This week is historically slow so I would be surprised to see any acute movement.
Current outlook: neutral