Tag: aug 25 2010 mortgage rates

Rate Update August 25, 2010

Posted on by Evan in Rate Update

Mortgage rates are priced slightly better this morning.

Another day of weak economic data is weighing on stocks and helping mortgage rates.  The Commerce Department reported this morning that new homes sales and demand for durable goods in July came in weaker than expected.  The Dow Jones Industrial Average briefly broke below 10,000 on low trading volume.

Overnight Standard & Poor’s cut the credit rating on Ireland’s government bonds which has further fueled the “flight-to-safety” which pushes mortgage rates lower.

Tomorrow brings weekly jobless claims figures which over the past couple weeks has been reported weaker than expectations.  At this point mortgage rates are back down at all-time lows making it an opportune time to lock.

Current outlook: neutral

Rate Update August 24, 2010

Posted on by Evan in Rate Update

Mortgage rates are better this morning.

Stocks are trading lower, helping mortgage rates, on weak existing homes sales for July.  The National Association of Realtors reported this morning that existing home fell to the lowest level in 15 years last month.  However, overlooked in the report is the fact that July is almost always the highest inventory month of the year AND median home prices actually rose by .7%.

Also pushing yields lower this morning is comments out of the UK by a Bank of England official who stated that a double-dip recession is a significant risk.  This has spooked equity investors into chasing relatively “safe” outlets for their capital.

Each of the past two days the stock market has reversed course mid-day.  If this happens today it may be a good idea to lock.  For now, I’ll shift to floating position.

Tomorrow brings the durable goods orders report and new home sales.

Current outlook: floating