Mortgage rates are unchanged from yesterday.
Yesterday’s 7-year Treasury note auction was met with tepid demand. Here on ‘rate update’ I have been monitoring the US Treasury auctions since the beginning of the year but this weeks marks the first time they’ve had a substantial impact on borrowing costs. This chart in today’s Wall Street Journal does a nice job of summarizing the week.
This morning’s GDP report from the Commerce Department showed that inflationary pressure remains subdued in the economy. Low inflationary pressure is a good sign for mortgage rates.
Lastly, the Obama administration released details about their latest effort to curb foreclosures. You can read details HERE.
At this point it appears that mortgage-backed bond prices have stabilized. I continue to support a long-term locking bias but we may see modest improvement in the near-term.
Current outlook: neutral