Rate Update November 4, 2010

Mortgage rates are better again today.

In case you missed it, the Fed announced yesterday that they would buy $600 billion in US Treasury securities over the next 8 months.  Analysts were expecting a move of $500 billion over 6 months so the move is not a huge surprise.

What was surprising was that the Fed signaled that even after this $600 billion of money printing they continue to provide stimulus should the economy need it.  I believe this detail is providing the catalyst for rates to improve this morning.

That said, both stocks and bonds are trading higher this morning despite mixed economic data.  I am going to take a neutral position.

Current outlook: neutral

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.