Rate Update November 24, 2010

Mortgage rates are priced slightly better this morning.

Mortgage-backed bonds (MBS’s) woke up on the wrong side of the bed this morning.  As tensions ease on the Korean Peninsula & investors grow more confident in the Irish debt bailout we’re seeing an unwinding of flight-to-safety trade that helped mortgage rates yesterday.

It’s been a busy morning in terms of economic data.  Personal spending and household income grew in line with expectations last month according to the Commerce Department’s monthly figures.  Inflation figures embedded in the same report showed price pressure remains weak.

This week’s jobless claims number fell by more than expected to the lowest level since July of 2008.  This news has brought some optimism into the market and is prompting rates to move higher.

Stocks have started the day higher which is pressuring rates higher.  I still believe a long-term locking trend is prudent.

Have a great Thanksgiving!  Rate Update will be eating leftover turkey and watching football on Friday!

Current outlook: locking bias