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