Rate Update July 6, 2010
Mortgage rates unchanged this morning.
The economic calendar is fairly light this week so I expect mortgage rates to react to the stock market.
On that note stocks are trading higher this morning after losing 4.5% last week. Many analysts believe that stocks are oversold and bonds are overbought which means we may see mortgage rates rise in the near-term.
The longer run trend is still positive for interest rates however. As we saw last week the jobs & housing markets are still struggling and until those areas of the economy gain traction investors are likely to remain in relatively “safe” fixed income investments.
Current outlook: locking in near-term, floating long-term