Rate Update November 29, 2010
Mortgage rates are worse than last week.
Although mortgage rates are higher today than they were on Wednesday of last week mortgage-backed bonds are actually rallying today on a flight-to-quality trade. The appetite for relatively “safe” US debt securities is being driven by the EU’s announcement for the details of the Irish banking bailout (in case you’re curious to learn about the origins of the Irish banking crisis you should check out THIS PODCAST from NPR’s Planet Money). Investor’s are not convinced the bailout will prevent the crisis from spreading which is why US debt securities are benefiting.
It will be a fairly busy week for economic data that will conclude with Friday’s all-important jobs report. Last month the monthly jobs report beat expectations and since then 30-year fixed mortgage rates have increased by .50%.
Current outlook: near-term floating, long-term locking
Posted: November 29th, 2010 under Rate Update.
Tags: nov 29 2010 MBS, nov 29 2010 mortgage rates, nov 29 2010 outlook for rates