Mortgage Rate Update December 20, 2010
Mortgage rates are better today.
It took longer than expected but mortgage rates have reversed lower as technical trading patterns suggested they would. However, the technical support appears to have worn off so now we’ll have to watch the stock market and economic data for clues on the direction of mortgage rates.
The meat of the economic calendar comes on Wednesday and Thursday when we’ll see GDP, existing home sales, personal income, personal consumption, & jobless claims.
Bernanke walking into the Treasury to buy up some paper
Due to the holiday there are fewer buyers and sellers in the market which is a recipe for volatility. The Fed is expected to be active in the treasury market today scooping up $13-$17 billion of US Treasuries. This should help mortgage rates remain at current levels.
Current outlook: locking bias
Posted: December 20th, 2010 under Rate Update.
Tags: dec 20 2010 lock or float, dec 20 2010 MBS, dec 20 2010 mortgage rates. dec 20 2010 outlook for rates