Rate Update November 5, 2010

Mortgage rates are unchanged this morning.

With everything going on this week (elections, QE2, and a busy economic calendar) I almost overlooked this morning’s employment report.  The Bureau of Labor Statistic’s monthly jobs report showed that private employers added 159,000 jobs in October.  Furthermore, they revised lower the job losses for September.  Overall the report was better than expected which is not good for mortgage rates.

From a technical perspective mortgage-backed bonds (MBS’s) are trading up against technical support.  Should MBS’s break below this support level I will switch to a locking position.

Looking ahead to next week we’ll be watching US Treasury sales but the economic calendar is light.

Current outlook: cautiously floating watching technical trading patterns