Rate Update November 10, 2009

Posted on by Evan in Rate Update

Mortgage rates are unchanged from yesterday.

There is no significant economic data scheduled for release today.

Yesterday the US Treasury auctioned $40 billion in 3-year notes that were well received by investors.  Strong demand for 3-year notes helped shorter term yields move lower (you’ll notice that 5/1 ARMs are better this AM).  Today the Treasury is set to auction a record $25 billion in 10-year notes.  If demand remains strong this would be a good sign for mortgage rates and vice-versa.

There are also three Fed officials speaking today.  Anytime officials from the Fed speak it has the ability to move the markets; especially on days when there is no economic data.  With rates improving modestly yesterday we’re going to recommend taking chips off the table.

Current outlook: locking bias