Rate Update September 10, 2010

Pricing on mortgage rates are worse again this morning.

Mortgage-backed bonds (MBS’s) have now broken below important layers of technical support.  If they close below these levels again today I would expect rates to remain higher for the next couple weeks.  Fortunately I shifted my near-term outlook to locking a week ago so hopefully existing clients are protected.  If a person can afford to wait 30+ days I think there is a compelling case for floating.

The economic calendar is light today so I would expect interest rates to react to the stock market.

Current outlook: near-term locking, long-term float

The views and opinions expressed in this site are those of the author(s) and do not necessarily reflect the official policy or position of Cherry Creek Mortgage Co., Inc. This is for informational purposes only. This is not a commitment to lend.