Rate Update March 23, 2010
Mortgage rates are priced modestly better this morning.
Mortgage rates and other long-term interest rates continue to benefit from concern over the fiscal health of Greece and other EU countries. Greece has yet to unveil a credible plan to solve its problems and as a result US debt securities (including mortgage-backed bonds) are benefiting from a “flight-to-quality”.
Earlier this morning the National Association of Realtors reported that existing home sales dropped for the third consecutive month. However, the drop was less than expected so stocks are trading higher on the news.
Looking ahead the US Treasury will auction $44 billion in 2-yr notes. If you’d like to lock your money up for 24 months @ .953% then call your stockbroker today! I’ll be watching to see if mortgage rates are impacted by the added supply of debt securities.
I continue to recommend a locking position.
Current outlook: locking bias