Rate Update August 3, 2010

Mortgage rates are unchanged this morning.

There has been a renewed focus on the Fed and their efforts to help stimulate the economy.  In this morning’s WSJ, John Hilsenrath reports that the Fed is considering various methods for keeping interest rates low.  This is a positive sign for mortgage rates.

Weak economic data is also helping mortgage rates this morning.  Personal Income and Personal Spending were both reported weaker than expected in July.  Personal savings, however, was up +6.4% which is a sign that US households are paying down debt and saving their money.

At this point we think we can continue to flat until we get closer to Friday’s employment report.

Current outlook: floating