Rate Update for August 25, 2008

Mortgage rates are modestly lower today as mortgage-backed bonds trade inversely with the stock market.

Mortgage rates are benefiting from a “flight-to-quality” which I explain in today’s you tube video which can be viewed here-

Later this week the Personal Consumption Expenditure (PCE) report is scheduled to be released which is an extremely important piece for inflation expectations.  For now, we will remain in a floating position.

Current Outlook: floating bias