Rate Update October 20, 2008
Mortgage rates are essentially unchanged from Friday.
Global stock markets all traded higher overnight as confidence grew regarding the global bailout of the credit system. Specifically, the Dutch government announced that it would inject $13.4 billion into that nation’s largest financial institution, ING Bank.
In the US stocks & mortgage-backed bonds are trading higher which may help rates move lower this afternoon. At least for today, investors appear confident in mortgage-backed investments which is why both stocks and bonds are advancing concurrently.
As we look ahead it looks like a relatively light week for economic data. Because of this, we’ll stay focused on technical trading patterns for guidance on rates.
Current outlook: floating