Mortgage Rate Update April 16, 2012
Mortgage rates are unchanged today.
After falling sharply last week the Dow Jones Industrial Average is opening the week higher on a stronger than expected US retail sales report. However, thus far interest rates have managed to remain low on continuing fears regarding the European debt crisis.
10-year Spanish bond yield have risen back above the 6.00% levelfor the first time since the European Central Bank (ECB) intervened about a month ago.
Investors remain worried about the Spanish governments ability to remain solvent in the face of economic contraction. Concerns over Spain are also bleeding into Italy where bond yields are rising as well.
In the beginning of March the combination of a strong US jobs report and ECB action to improve the fiscal stability of EU countries pushed mortgage rates higher by .25-.375%. Since the beginning of last week those increases have been mitigated as concerns over the US economic recovery and financial condition of the EU reemerge.
Current Outlook: floating