Mortgage rates are unchanged from yesterday afternoon.
There is a lot of economic data hitting the wires this morning.
Standard & Poors released their monthly Case-Shiller Home Price Index report. It showed home prices down on a year over year basis nationwide but were up for the third straight month. The markets have taken a muted reaction to the news likely because of the realization that short-term stimulus has played a major role in the improvements.
The Conference Board released data which suggests that US consumers turned more pessimistic in October. Bad news for the economy tends to be good news for mortgage rates and this report is providing the mortgage-backed bond (MBS) market with some support after yesterday’s sell-off.
Later this morning the US Treasury will auction $44 billion in 2-year notes (most ever in one day). If demand remains strong we could see MBSs benefit which could puch yields back down and vice-versa.
Lastly, there is news out of Washington that the Senate will be voting on legislation today to extend the first-time homebuyer credit for 4 months.
Current outlook: neutral