Mortgage rates are better today.
The interest rate markets are still highly focused on what the Fed will do in terms of quantitative easing. Deutsche Bank has estimate that the current level of interest rates suggests that the market anticipates the Fed will step in and buy an additional $315-$670 Billion in US Treasuries. Therefore, if the Fed announces a larger number we’d expect rates to dip and vice versa.
Looking ahead for the week there are 3 major reports we’ll be following. The first is a read on the service sector due out tomorrow, the second is initial jobless claims due out Thursday, and then Friday brings the latest employment report.
Current outlook: locking bias