Rate Update March 22, 2010
Mortgage rates are unchanged this morning.
Mortgage rates are entering the 12th straight week of relative flatness. I have been quoting 30-year fixed rates in the range of 4.75% (4.88% APR)- 5.00% (5.12% APR) since the beginning of the year.
Frankly I don’t see anything happening this week that will change the streak but you never know with the financial markets. Sometimes they have a tendency to lull you to sleep only to shock you awake.
The US Treasury is back on the auction block this week with $118 billion in 2-year, 5-year, and 7-year notes. Recently demand for US debt has been strong and we expect that to continue this week.
Concern still lingers over Greece’s financial stability. The country has yet to deliver a credible rescue plan. As a result some investors are still seeking the “safety” of US debt which is helping mortgage rates.
I continue to recommend a locking bias.
Current outlook: locking bias