Rate Update September 10, 2010

Pricing on mortgage rates are worse again this morning.

Mortgage-backed bonds (MBS’s) have now broken below important layers of technical support.  If they close below these levels again today I would expect rates to remain higher for the next couple weeks.  Fortunately I shifted my near-term outlook to locking a week ago so hopefully existing clients are protected.  If a person can afford to wait 30+ days I think there is a compelling case for floating.

The economic calendar is light today so I would expect interest rates to react to the stock market.

Current outlook: near-term locking, long-term float