Rate Update November 9, 2010

Mortgage rates are unchanged this morning.

Mortgage rates are likely to remain flat until the US Treasury auctions $24 billion in 10-year notes later today.  Demand is expected to be strong which will help keep rates low.  Should demand for this round of US debt fall short of expectations we could see rates get pressured higher.

Earlier today the National Federation of Independent Businesses reported that their index of small business sentiment increased by more than expected.  We can add this to the list of economic data that has shown modest signs of improvement over the past couple weeks.

What is worrying from an interest perspective is that as the economy builds momentum the quantitative easing the Fed has put into play will spark inflationary concerns which would pressure rates higher.  We’ll have to keep an eye on that.

Current outlook: cautiously floating watching technical trading patterns