Rate Update July 30, 2010
Mortgage rates are unchanged today.
Stocks have opened lower on weak economic and earnings data, which should help mortgage rates. The Commerce Department reported this morning that 2nd quarter GDP growth was more sluggish than analysts had expected. Furthermore, they went back revised previous GDP growth figures lower for the past 3 years.
Also hitting stocks and helping mortgage rates was weaker than expected earnings reports from Chevron and Merck.
Mortgage-backed bonds (MBS’s) are rallying this morning pushing prices into an “overbought” level. We will shift our outlook to floating for now. But, next week brings a busy economic calendar so it may not last long.
Current outlook: floating