Rate Update September 23, 2010
Mortgage rates are slightly better this morning.
It seems as though Tuesday’s Fed comments are looking more and more like a turning point for mortgage rates. Rates are better again today and testing all-time lows again as many analysts believe the Fed will step into the interest rate markets and drive long-term yields lower. It’s important to note that the Fed has not explicitly stated any plans.
The economic data has also taken a turn for the worse after it had been relatively positive for most of September.
Today, existing home sales were reported higher than expected BUT they still remain at the second weakest pace since 1997. Weekly jobless claims were reported worse than expected for the first time in a couple weeks.
There is more significant economic data set for release tomorrow. I’ll continue to recommend a floating position
Current outlook: floating