Rate Update July 27, 2010
Mortgage rates are unchanged so far today but we may see them move higher as the day goes on.
The “flight-to-quality” trade is unwinding a bit in the financial markets today. Stronger than expected earnings reported by European banks is cultivating some confidence in the equity markets. As a result we’re seeing yields move modestly higher so far today.
10 year treasury yields have broken through technical resistance while the S & P 500 pierced through it’s 200-day moving average. From a technical perspective this could mark a trend reversal which has me concerned.
Standard & Poors released the Case-Shiller Home Price Index report for May. It showed positive growth but must be taken with a grain of salt since the first-time homebuyer tax credit was still in effect.
Due to the technical trading patterns I am going to shift to a locking stance.
Current outlook: locking