Rate Update October 13, 2009

After mortgage rates rose by approximately .25% beginning Friday of last week, they have recovered half their loss this morning.

There is not any significant economic data scheduled for today.  Looking ahead for the week we’ll be watching Retails Sales tomorrow, the Consumer price Index on Thursday, and Industrial Production on Friday.

We’re at the beginning stages of 3rd-quarter earnings season when public corporations disclose their 3rd-quarter results.  You can read here why this can impact mortgage rates.  This morning stocks are lower after Johnson & Johnson reported earnings.  Even though their earnings beat estimates the markets were disappointed.  The weaker market is helping mortgage rates.

We are going to shift to a floating position even though we believe rates are headed higher in the long-term.

Current outlook: floating short-term, locking long-term