Mortgage rates are worse this morning.
After improving yesterday mortgage rates appear to be back in a see-saw pattern. Yesterday stocks opened worse and rates were improved and this morning the opposite is taking place.
Stocks are rallying today on the news that Portugal was able to successfully auction €1.039 billion in debt. This is a sign that the markets are less concerned about the sovereign debt crisis which originally helped US interest rates move lower back in April-May.
Speaking of selling debt the US Treasury is back on the auction block today with $21 billion in 10-year notes. Yesterday’s 3-year auction was met with strong demand which is a good sign for mortgage rates.
Later today the Fed will release the monthly beige book of economic indicators. This report doesn’t typically draw a lot of attention so I don’t think it will shake the markets. Tomorrow is Thursday which means we’ll get weekly jobless claims.
Current outlook: near-term locking, long-term float