Mortgage rates are slightly better this morning.
With a relatively light load of economic data released today the markets are focused on the Fed and whether or not they will engage in further stimulus to help the ailing economy. I blogged about an interesting perspective HERE yesterday in which a WSJ reporter anticipates that the Fed will take action but in a different manner than they did in 2009. The impact of Fed action is to reduce long-term interest rates.
At this point the markets are betting that the Fed will engage in further quantitative easing so any news to the contrary (Fed statements or positive economic data) are likely to pressure rates higher.
For now we’ll shift to a floating position.
Current outlook: floating