Mortgage rates are unchanged this morning.
Despite worse than expected economic news US stocks are starting the morning off higher again. Investors are taking a cue from Asian & European stock markets which traded higher thanks to better than expected economic news on those continents.
Here in the US new home sales declined to the lowest level in 5 months falling .7% from June to July.
The US Treasury is set to auction $35 billion of 2-year notes (available with a whopping .22% yield!) today and will follow it up with more auctions tomorrow and Thursday. The added supply of fixed income securities will make it tough for interest rates to rally lower.
Analysts are focused on this Friday’s speech by Fed Chairman Ben Bernanke who will be speaking to central bankers in Jackson Hole, Wyoming. Will he indicate a 3rd round of quantitative easing is imminent? Or will he keep his options open by remaining silent on the subject? If he does indicate another round of monetary stimulus it could push rates back down to all-time lows.
Current Outlook: neutral