Mortgage Rate Update July 16, 2015

Mortgage rates are slightly better today than they were on Monday.  Effectively rates are back in line with where they were right before the Greek bailout deal was announced.

Speaking of Greece, worries over Greece exiting the Eurozone in a disorderly fashion are all but erased for now.  Eurozone creditors are in the process of extending financing to Greek banks and the Greek Parliament has agreed to adopt stiff austerity measures in exchange for further funding.

The interest rate markets will now shift focus back on the domestic economy and the Federal Reserve.  In prepared testimony to congress Fed Chairwoman Janet Yellen told lawmakers that should the economy continue to grow as expected then they would plan to raise short-term rates later this year.  She has been very careful to also state that the pace of increases will be gradual.

The number of Americans filing for unemployment benefits continues to decline.  Data out today showed only 281,000 new claims were filed.  The labor market continues to show strength.

From a technical perspective mortgage rates look ripe to move higher.  I am going to recommend a locking bias.

Current Outlook: locking