Mortgage rates remain unchanged from Friday. With the lack of any significant economic data out today we expect mortgage rates to take direction from the stock market.
Currently stocks are trading modestly higher following positive comments made by banking analyst Meredith Whitney on CNBC this morning. Her comments have helped push financial stocks higher. If you recall back to last week’s ‘rate update’s we believe that the financial sector will play an important role in determining the direction of mortgage rates for the coming weeks. Although stocks are higher mortgage rates have not moved higher.
There is a strong possibility for volatility tomorrow as Goldman Sachs is scheduled to release 2nd-quarter earnings and the Labor Department is scheduled to release inflation-related data. Given that mortgage rates are .75% lower than they were four weeks ago we maintain a bias towards locking.
Current Outlook: bias towards locking