Rate Update October 19, 2009
Mortgage rates are unchanged from Friday morning.
It is going to be a busy week as economic news will be hitting from all angles.
Later this morning Fed Chairman Ben Bernanke is scheduled to speak in San Francisco on Asia and the global financial crisis. He will likely speak to the trade & savings imbalances that exist between the US and China which could impact the bond market and therefore mortgage rates.
3rd quarter earnings season rolls on this week. Last week 61 companies in the S & P 500 reported and 79% of those beat estimates. Not by coincidence mortgage rates also moved higher last week. 130 companies are scheduled to report this week. If their earnings are healthy as well we will likely see rates pressured higher and vice versa.
Mortgage backed bonds (MBSs) are trading within a tight technical range meaning we may see a sudden “breakout” which could mean a sharp movement of mortgage rates for better or worse.
The conservative play is to lock in ahead of all this data. However, mortgage rates may improve from current levels.
In case you missed it, I made this post on Friday on my blog regarding closing time frames with regard to first time homebuyers and the $8,000 credit. If you have any first time homebuyers you are currently working with it is important reading.
Current outlook: neutral, locking long-term