Mortgage Rate Update December 8, 2011
Mortgage rates are unchanged this morning.
It looked like interest rates would move higher after the weekly jobless claims report showed the number of people filing for unemployment benefits dropped to the lowest level in 9 months. Good news for the economy is often bad news for mortgage rates.
However, that news has been overshadowed by comments made by European Central Bank (ECB) President Mario Draghi. In a press conference the ECB President rolled out some new measures to help the ailing region. However, he stopped short of committing to increased government bond purchases which is what some analysts were forecasting.
As a result, investment capital is flying back across the Atlantic Ocean and into US debt securities including mortgage-backed bonds. EU leaders are meeting this weekend in Brussels in what some folks are billing as a last ditch effort to save the common currency.
Mortgage rates will take direction from developments from the EU summit. Positive news for the EU will likely send mortgage rates higher and vice versa.
Current Outlook: locking