Rate Update October 20, 2009
Mortgage rates are lower this morning.
This morning prices at the wholesale level were reported and showed a larger than expected drop. On a year-over-year basis the Producer Price Index dropped by 4.8%. Low inflationary pressure is good for long-term mortgage rates.
In addition, the Commerce Department reported this morning that housing starts were flat in September. Analysts had expected an increase and the stock market is reacting negatively. Bad news for the economy tends to be good news for mortgage rates.
Current outlook: neutral, locking long-term