Rate Update September 30, 2010

Mortgage rates are look like they will open up worse this morning.

A string of positive economic data is pressuring rates higher.  The Labor Department’s weekly report on jobless claims showed that they declined by more than expected last week.

In a separate report the Commerce Department revised higher its previous estimate of 2nd quarter GDP to 1.7% (from 1.6%).  However, the inflation gages embedded in this report continue to show that inflationary pressure remains weak which is why mortgage rates are so low.

There is a foursome of Fed officials slated to speak today at various events across the country including Fed Chairman Ben Bernanke.  The market is still betting on the Fed taking further quantitative measures following their November meeting. Should any of these officials drop any hints it could certainly move the markets.

Current outlook: floating