Rate Update July 22, 2010
Mortgage rates are unchanged today.
Stocks have started the day higher on better than expected earnings from Caterpillar, 3M, and AT&T. When stocks rally it often puts upward pressure on mortgage rates.
However, stocks are actually recovering from yesterday’s losses. In his testimony to lawmakers on Capitol Hill yesterday Fed Chairman Ben Bernanke called the economic outlook “unusually uncertain”. These aren’t exactly the reassuring words that you want to hear from your national reserve bank chairman. Needless to say stocks sold off yesterday afternoon. The Fed Chairman is back at it today providing similar testimony to the House Financial Services Committee today.
The US Treasury will announce the size of next weeks auctions of 2, 5, and 7-year notes today. Greater supply than expected could pressure rates higher and vice versa.
For now we’ll continue to remain in a neutral position.
Current outlook: neutral