Mortgage rates are priced slightly worse this morning.
The see-saw in the financial markets is back again this morning. In early trading US stocks are rebounding after 3 days of losses. The appetite for “riskier” assets is threatening to push mortgage rates higher for now.
Later today the Fed will release their monthly “beige book” of economic indicators. Most of the economic data in this report is dated but investors are looking for any signs of optimism so this release could impact interest rates.
Both President Obama and Fed Chairman Ben Bernanke are scheduled to speak tomorrow. The president is expected to release details of his latest jobs creation plan. If the markets buy into his plans we could see rates increase on the optimism. Analysts believe the Fed may outline a plan to sell shorter dated US Treasuries and reinvest the proceeds in longer-duration US Treasuries. This should help keep mortgage rates low.
We’ll have to wait and see how their comments play out.
Current Outlook: neutral