Rate Update July 6, 2009
Mortgage rates are essentially unchanged this morning despite an economic storyline that would typically help rates move lower.
Equity markets around the world traded lower today as investors pull back on stocks ahead of earnings season which kicks off on Wednesday. The US Dollar is trading higher against foreign currencies and oil prices are lower. This inflation-easing news has yet to help mortgage rates because of technical trading patterns.
We’ll keep a close eye on the market over the next couple days to see if bond prices can break through the 50-day moving average. If they can, expect lower mortgage rates later in the week. However, we’re taking a risk because it’s also very possible for bond prices to bounce lower here which would push rates higher.
Current Outlook: Cautiously floating