Rate Update October 5, 2009

Mortgage rates are unchanged from Friday.

For the week it looks to be a light offering in terms of economic data.  However, the Fed has a heavy auction schedule this week.  US Treasury auctions boost the supply of fixed income securities on the marketplace which can create upward pressure on interest rates.  We will be watching these auctions closely.

We remain in a locking position.  Mortgage rates are currently at historic lows.  It is possible that rates continue to improve.  However, rates will revert to a more historical mean at some point and when they begin to go we expect them to go quickly.

Current outlook: locking