Mortgage Rate Update August 10, 2011

Posted on by Evan in Rate Update

Mortgage rates are lower again this morning.

A major flight-to-safety has helped push mortgage rates back down to all-time lows.  In its monetary policy statement yesterday the Fed committed to keeping short-term interest rates low through “at least mid-2013”.  Although short-term rates do not directly impact mortgage rates the explicit message provides businesses & households with some more certainty regarding short-term borrowing costs.

In Europe concerns persist regarding the strength of the financial sector as well as the solvency of Italy & Spain.  This is driving capital into US-denominated debt markets including mortgage-backed bonds.  As a result, rates have fallen.

Mortgage rates have touched back down to all-time lows.  Will they get better?  Momentum is on our side but I can’t imagine being upset over a fixed rate at or below 4.00% (APR: 4.125%).

Current Outlook:  floating