Mortgage rates are priced modestly worse from Friday afternoon.
This morning stocks are trading higher which is damaging the interest rate markets. Stocks are trading higher on better-than-expected construction spending data and better-than-expected earnings out of European financials.
If you’ll recall the most recent “flight-to-quality” trade has stemmed from concern over the economy and investors fleeing European investments for “safer” US-denominated investments. As a result, yields here at home have declined.
In prepared testimony this morning Fed Chairman Ben Bernanke reassured the markets that the US economy is slowly recovering. His comments are also adding to the optimism.
However, it will be a fairly busy week that ends with July’s employment report so stay tuned.
Current outlook: floating