Rate Update July 8, 2010

Mortgage rates are worse this morning.

Back on Tuesday I pointed out that technical trading patterns suggested that stocks were over-sold and bonds were overbought.  Since then the stock market has rallied and interest rates have moved higher.  Technical trading patterns are very telling most of the time.

Stocks are off to a positive start again this morning which is likely to pressure mortgage rates higher in the near-term.  The weekly jobless claims figure was better than expected this morning which is encouraging investors to take on more risk.

Later today the US Treasury will announce the size of their auctions for next week.  The markets are expecting $69 billion.  I number north would pressure rates higher and vice versa.

Current outlook: locking in near-tern, floating long-term