Mortgage rates are unchanged this morning.
Mortgage-backed bonds and US Treasuries are starting the day lower once again which threatens to push rates higher. As I had blogged about yesterday growing concerns over Irish & Portuguese government debt had me hopeful that we may catch another “flight-to-quality” trade. However, earlier today the EU announced measures that have eased concerns for now.
Today the Fed will begin buying US Treasury securities as a part of QE2. The Fed has come under immense criticism since their announcement and interest rates have actually risen. Investors are concerned that the additional money supply created through QE2 could ultimately lead to hyperinflation.
Current outlook: locking bias