Mortgage Rate Update December 16, 2011
Although note rates are unchanged again this morning the associated closing costs required to obtain these rates have gradually declined over the past week so in fact mortgage rates are only slightly worse than the all-time lows created in late September.
Interest rates here in the US continue to benefit from the ongoing “flight-to-safety” caused by uncertainty in Europe. All of the progress made thus far amongst EU leaders has been focused on preventing another debt crisis from occurring in the future.

However, investors are more concerned with how they intend on managing the current crisis.
The ratings agency Stand & Poor’s released a report today in which they warned against the severe economic downturn Europe would likely suffer should leaders fail to address the issue. Bad news for the economy is good news for interest rates.
The Labor Department released the monthly Consumer Price Index report for December. The figures showed that inflationary pressure remains gradual and within expectations. Inflation is a key driver of mortgage rates.
I’ve maintain a neutral position.
Current Outlook: neutral