Mortgage rates are unchanged this morning.
After hitting 5-month lows a little over a week ago mortgage rates failed to improve last week but they didn’t rise either. Mortgage rates continue to find themselves caught in between the bulls and bears with one side believing rates will continue to move lower on a weaker economic outlook and the other arguing that current economic conditions are short-term and that inflation is right around the corner.
The economic calendar is fairly light this week so we’ll be keeping a close eye on the stock market & technical trading patterns for direction. I still believe that mortgage rates will finish 2011 at around 5.00%-5.25% for a 30-year fixed rate mortgage but rates may get better before they get worse.
Current Outlook: neutral