Mortgage Rate Update January 26, 2015

Posted on by Evan in Rate Update, Swanson Home Loans Blog - Mortgage Rate Updates and More

Mortgage rates are unchanged from late last week.

Over the weekend the left-wing Syriza party was victorious in Greece’s national election.  The party ran on a platform opposing European Central Bank mandated reforms including austerity measures.  The election calls into question the long-term viability of Greece as an European Union (EU) member.  Should Greece secede from the EU it would set an unwelcome precedent for the remaining member states.

The financial markets will be focused on Greece over the next few months to see if they secede from the EU.
The financial markets will be focused on Greece over the next few months to see if they secede from the EU.

The bottom line is the election creates greater economic uncertainty which tends to benefit interest rates.  It also furthers the trend of money flowing out of Europe and into the US which will help keep our mortgage rates low.

The economic calendar is packed with significant data points this week.  Tomorrow the S&P Case-Shiller home price index will be released.  In addition, we have a Fed rate decision on Wednesday (short-term interest rates expected to be unchanged) and Q4 2014 GDP on Friday.

From a technical perspective the yield on the US 10-year treasury remains within a downward trend.  I will recommend a floating position as long as that pattern remains in place.

Current Outlook: Floating