Houston's Rate Sheet

Mortgage rates continue to fall

Based on Bankrate.com's overnight averages, mortgage rates were down from 5.81 percent to 5.75 percent. Rates keep on sliding which is good for all of us.

However, this trend may not continue. The release of the ISM's February Index showed accelerating manufacturing output. This is a sign that the economy is running at a pretty good clip and accelerating growth can lead to higher inflation. In reaction, Bond investors bid down the benchmark 10-year Treasury bond. Yields on the 10-year note rose 2 basis points to 4.57 percent. The 10-year Treasury is a good indicator of where long-term debt (such as the 30-year Fixed Rate Mortgage) will move.

posted by Vincent Biondillo @ 9:35 AM