Rate Update October 1, 2008

Mortgage rates are modestly higher this morning in response to yesterday’s rally in the stock market (click here to learn how stocks can impact mortgage rates).

This morning stocks have reversed back lower as anxiety looms over the government’s financial bailout plan.  The Senate is expected to vote on and pass a revised version of the bailout plan today but the House or Representatives will still need to concur.

Over the past couple weeks the financial markets have mainly been driven by news about the crisis looming in the credit markets.  As a result many of the periodic economic reports have been overshadowed.  That might change this Friday when the monthly jobs report is scheduled for release (click here to read why the employment report is important to mortgage rates).

We will outline our jobs report outlook in tomorrow’s rate update.

Current Outlook: long-term floating