Rate Update July 20, 2010
Mortgage rates are unchanged today.
As I mentioned in yesterday’s ‘rate update’ mortgage rates are likely to react to the stock market (see how stocks impact mortgage rates HERE). Yesterday afternoon mortgage rates looked as though they would move higher after stocks bounced off the lows of the day. This morning stocks have reversed lower on weaker than expected earning reports from Goldman Sachs & IBM. This has helped rates reverse lower.
The Commerce Department reported earlier that new housing starts were worse than expected last month. Bad news on the economy is often good news for mortgage rates.
I still don’t see a compelling reason why rates would move significantly higher or lower until later in the week.
Current outlook: neutral