Mortgage Rate Update August 19, 2011

Mortgage rates are slightly worse this morning.

Stock markets in the US closed sharply lower yesterday.  Today European markets are following in the same direction.  It is no secret that the European financial system is under stress as a result of exposure to government debt in Greece, Spain, and Italy.  Thus far European officials have responded with minor steps to shore up confidence.  However, it is clear that they may have to form a significant plan to curb financial contagion.

With no economic news due out today here in the US interest rates will likely take direction from stocks.  Stocks are trading slightly higher in early morning trade.  I expect mortgage rates to remain quiet the rest of the day today.

Current Outlook:  neutral