Rate Update March 26, 2010
Mortgage rates are unchanged from yesterday.
Yesterday’s 7-year Treasury note auction was met with tepid demand. Here on ‘rate update’ I have been monitoring the US Treasury auctions since the beginning of the year but this weeks marks the first time they’ve had a substantial impact on borrowing costs. This chart in today’s Wall Street Journal does a nice job of summarizing the week. 
This morning’s GDP report from the Commerce Department showed that inflationary pressure remains subdued in the economy. Low inflationary pressure is a good sign for mortgage rates.
Lastly, the Obama administration released details about their latest effort to curb foreclosures. You can read details HERE.
At this point it appears that mortgage-backed bond prices have stabilized. I continue to support a long-term locking bias but we may see modest improvement in the near-term.
Current outlook: neutral
Posted: March 26th, 2010 under Rate Update.
Tags: march 26 2010 lock or float, march 26 2010 mortgage rate advice, march 26 2010 mortgage rate update, march 26 2010 mortgage rates, march 26 2010 motgage rate report, march 26 2010 outlook for rates