8/11/09

Good morning. We saw some improvement in rates yesterday – although many feel that mortgage rates are going to stay near here for quite some time. Although the economic data is varying from one day to the next, for the most part it is “less bad” then before, leading to some optimism about the economy. But a stronger economy leads to higher rates, right? Remember, however, that the data is not all pointing to strength, so stay tuned…
For example, this week, starting today, we have $75 billion of Treasury supply to absorb. ($37 billion today, $23 billion of 10-yr Notes tomorrow, and $15 billion in 30-yr bonds will be sold Thursday.) On top of this, we have the FOMC's two day meeting which begins today, although no one is looking for any changes in the overnight Fed Funds rate. With no other economic news, we find today’s mortgage prices about the same.