Mortgage rates are unchanged from yesterday.
The news out this morning is unfriendly for mortgage rates. This morning’s retails sales report from the Commerce Department showed better than expected results for September and revised higher the previously released figures for August. The upbeat report has analysts less concerned about a double dip recession which is good for the economy but bad for interest rates.
Optimism regarding the European Debt crisis continues to improve this morning. The Financial Times is reporting that emerging markets are in talks with the International Monetary Fund to help produce a bold plan to resolve the ongoing crisis. The enhanced participation has investors thinking that Europe will be able to escape an all-out collapse of the financial system.
Lastly, the 10-year Treasury Note is currently yielding just shy of 2.30% which is a significant technical layer of resistance. Because mortgage rates loosely follow the 10-year note I anticipate mortgage rates should remain in this range until new information emerges about our economy and/ or the outlook for Europe.
Current Outlook: neutral