Rate Update March 8, 2010

Mortgage rates are unchanged from Friday.

Over the weekend French President Nicholas Sarkozy publicly voiced France’s support for Greece as it tries to navigate its way out of the financial mess they find themselves in.  His support is likely to take some more wind out of the “flight-to-quality” trade which has helped mortgage rates over the past couple weeks.

There isn’t much in the way of significant economic data until Thursday this week.  Until then I’ll be tracking the stock market, technical trading patterns, and US Treasury supply.

The US Treasury is set to auction $74 billion in 3-year, 10-year, and 30-year securities.  In addition, they will auction another $136 billion in Treasury bills (securities with durations one year or less).  Click HERE to understand how this can impact mortgage rates.

Given that rates are still very attractive I will maintain a locking recommendation.

Current outlook: locking bias