Mortgage Rate Update December 2, 2011

Mortgage rates are starting the day priced slightly worse compared to yesterday.

This morning’s all-important jobs report showed that 140,000 new jobs were added by private employers last month and the unemployment rate dipped to 8.6%.  The dip in unemployment is a bit misleading as it has more to do with job-seekers giving up than being hired.  These results are in line with expectations so it is not having much of an impact on mortgage rates.

In Europe leaders appear poised to roll out a larger plan to help curb contagion.  In a speech earlier today German Chancellor Angela Merkel called for urgent action to address the challenges that EU countries face.  European Central Bank (ECB) president Mario Draghi signaled that the ECB is preparing to take a larger role in the crisis.  This still adds up to a lot of talk with no real traction.

For now I will maintain a locking bias as we head into next week.

Current Outlook: locking bias