Rate Update September 8, 2009
Mortgage rates are modestly better than Friday afternoon.
It looks to be a relatively light week in terms of economic data. In the absence of economic data mortgage rates typically take direction from the stock market (click this link to learn how stocks influence mortgage rates) and/ or respond to technical trading patterns (click this link to learn more about technical patterns).
Also on tap are US Treasury auctions. The US Treasury will auction $38 billion in 3-year T-notes today, $20 billion in 10-yr notes tomorrow, and $12 billion in 30-yr bonds on Thursday. So long as foreign participation remains strong in these auctions we expect mortgage rates to remain low.
Current outlook: neutral with bias towards locking