Rate Update November 10, 2009
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