Rate Update May 13, 2010

Mortgage rates are unchanged so far today.

The US Treasury will auction off $16 billion in 30-year bonds today.  The auctions this week have been met with strong demand which is expected given the fears surrounding the EU debt crisis.  Strong demand for US debt securities is a good sign for mortgage rates.

Don’t look now but US stocks have almost fully recovered from last weeks 600+ point drop.  When stocks do well it often pressures mortgage rates higher.

The economic data out today is not significant.  Looking ahead to tomorrow we’ll get retail sales which can drive the markets.

I remain in a neutral position although the safe money is locking.

Current outlook: neutral