Mortgage rates are unchanged this morning.
By now you’ve heard that the US Government’s credit rating was downgraded one notch on Friday afternoon by Standard & Poor’s. Ironically interest rates on US government debt are falling in the face of that news. 
The much talked about downgrade is causing investors to seek “saftey” and despite Standard & Poor’s move investors still view the US as the safest place to invest in fixed-income securities; including mortgage-backed bonds.
Meanwhile across the Atlantic problems persist. The European Central Bank signaled over the weekend that it would step in and support Spanish & Italian Government debt in a bid to curb contagion fears.
Looking ahead for the week: The Fed will announce its latest monetary policy statement tomorrow. It is widely expected that they will maintain a cautious and accommodating stance. Retail Sales for July will be released on Friday.
I will shift back to a neutral stance.
Current Outlook: neutral