Rate Update November 12, 2008

Mortgage rates are essentially unchanged this morning.

Although the technical trading patterns in the mortgage-backed bond market did not appear favorable for mortgage rates they have managed to stabilize this morning.

Stocks are weaker due to concerns about consumer spending in the US economy.  As we’ve pointed out many times in the past here on rate update, it is often the case that when stocks trade lower mortgage rates benefit.

For now, we will shift our outlook back to a floating position and see if rates can trend back lower.  However, if mortgage-backed bond prices fail to close above the 200-day moving average it would be a negative sign.

Current outlook: floating