Mortgage rates are unchanged this morning.
Longer-term interest rates are having trouble moving below technical levels of resistance. I thought that yesterday’s flight-to-quality in the financial markets caused by fiscal worries regarding Europe would prompt interest rates to move lower. But, mortgage rates and the bellwether 10-year treasury note are up against technical resistance. Here is a chart that shows the 10-year treasury yield stuck above 3.30% since mid-December:
Today stocks in the US are following the lead of foreign exchanges around the globe higher. Earlier today Japan announced that they would commit to buying bonds from troubled European nations. This is helping to ease concerns an putting pressure on the flight-to-quality trade.
Later today the US Treasury will issue the first leg of this week’s $66 billion in treasury borrowing. Click THIS LINK to understand how this could impact mortgage rates. The meat of the economic calendar for the week doesn’t come until tomorrow afternoon. For now I am switching to a neutral position since we’re trading up against technical resistance.
Current outlook: neutral