Rate Update June 7, 2010

As indicated in Friday’s ‘rate update’ mortgage rates have improved following Friday’s disappointing jobs report.

As the NY Times reported over the weekend these low rates are sparking another round of refinance activity and this time around more and more homeowner’s are opting for 15 & 20 year mortgages instead of restarting a 30 year amortization with a lower payment.  It’s one more example of how consumers are deleveraging after the credit bubble.

The economic calendar is fairly light this week.  Trader’s attention will be on $70 billion in US Treasury auctions, Europe, and retail sales later in the week.  For now we’ll continue to float.

Current outlook: floating