Rate Update June 11, 2010

Pricing on mortgage rates is slightly worse today than it was yesterday morning.

In yesterday’s ‘rate update’ I shifted my outlook to ‘locking bias’ which proved to be fortuitous.  Mortgage-backed bonds (MBS’s) got slammed yesterday pushing mortgage rates higher in the afternoon.

However, volatility has swung back in our favor this morning following a weaker than expected retails sales report from the Commerce Department.  Bad news for the economy is often good news for mortgage rates.

We’ll shift our outlook to neutral heading into the weekend.

Current outlook: neutral